Diplomatic progress on reopening the Strait of Hormuz and a surprise 2.69 million-barrel build in US inventories weigh on oil prices.
West Texas Intermediate crude fell to $73.80 per barrel in Asian trading Wednesday, retreating from earlier gains as supply risks eased. The decline follows reports of diplomatic momentum toward reopening the Strait of Hormuz, a critical oil transit route, after Qatar drafted an interim proposal backed by the US and Iran.
US crude inventories rose by 2.69 million barrels last week, defying expectations of a 2 million-barrel draw. The increase follows a 3.3 million-barrel build the prior week, while commercial stocks excluding the SPR have declined by over 58 million barrels year-to-date.
Oil prices extended losses as Iran reviewed a framework allowing European nations to clear naval mines from the strait, while Saudi Arabia pursued mediated talks with Yemen’s Houthi rebels to secure Red Sea shipping lanes.