Brent and WTI diverge after US crude inventories rise 2.5 million barrels, defying expectations for a 1.5 million-barrel draw.
Oil markets remained volatile as hopes for a Strait of Hormuz de-escalation deal countered a surprise 2.5 million-barrel build in US crude inventories. Brent crude settled near $79 a barrel, while WTI slipped to around $75, reflecting mixed sentiment ahead of a potential Friday announcement on Iran-Oman talks.
Analysts had expected a 1.5 million-barrel draw, making the inventory increase a bearish surprise. Meanwhile, Iran denied ongoing peace talks but confirmed an understanding with Oman on managing the strait, adding to uncertainty. Houthi attacks on Saudi tankers and disruptions in the Caspian pipeline continued to support prices.
Traders are bracing for sharp swings as Friday’s potential Hormuz deal deadline approaches, with headline risk likely to drive sentiment in either direction.