Ships pass through the Strait of Hormuz as seen from Musandam, Oman, on Monday. [Reuters]
Ships pass through the Strait of Hormuz as seen from Musandam, Oman, on Monday. [Reuters]

Oil prices ended little changed Wednesday as negotiations over reopening the Strait of Hormuz showed signs of progress. Gains were capped, however, after US crude inventories unexpectedly rose while Iran and Oman were putting the finishing touches on a joint statement on restoring the shipping lane.

Brent crude for October delivery settled at $79.45 a barrel on the ICE Futures Exchange on Wednesday, up 0.1 percent from the previous session.

West Texas Intermediate for September delivery fell 0.7 percent to $75.22 a barrel on the New York Mercantile Exchange.

Iran's state-run IRNA news agency quoted Foreign Ministry spokesperson Esmail Baghaei as saying that an agreement had been reached on the geographic coordinates of the proposed shipping route. "A joint statement by the two countries, containing the key considerations and points of agreement, is currently under review and in its final stages," he said.

President Donald Trump said in a Fox News interview Wednesday that the Strait of Hormuz "will be open soon, or Iran will face a very powerful attack." He added that negotiators had been working throughout the day and that results would be known within 48 hours.

Secretary of State Marco Rubio also confirmed US involvement in the Hormuz negotiations between Oman and Iran, expressing hope for a swift agreement.

However, Iranian Deputy Foreign Minister Kazem Gharibabadi denied that Tehran was engaged in any direct talks with Washington, saying Iran had not conducted "any negotiations with the United States recently."

Meanwhile, US crude stockpiles rose against market expectations. According to the Energy Information Administration, commercial crude inventories excluding the Strategic Petroleum Reserve stood at 407 million barrels as of Friday, July 31, up 2.5 million barrels from the previous week. Analysts had forecast a draw of 1.5 million barrels, but the surprise build eased supply concerns and limited further upside in prices.


sjy@heraldcorp.com