Oil prices rose by more than $3 a barrel on Wednesday, driven by a decline in U.S. crude oil inventories, recovering some of the losses from the previous session caused by a halt in confrontations between Washington.
- Futures rose by $3, or 3.6%, to $87.13 a barrel at the time of writing, according to Oil Price data.
- U.S. West Texas Intermediate crude rose $2.8, or 3.6%, to $82.08.
Market sources said on Tuesday, citing data from the American Petroleum Institute, that U.S. crude oil inventories fell by about 3.3 million barrels in the week ending July 24.
At the same time, gasoline inventories rose by 918,000 barrels, while distillate inventories increased by 355,000 barrels compared to the previous week.
Official inventory data from the Energy Information Administration is due later on Wednesday.
OPEC and its allies in the alliance provided additional support to prices, as sources told Reuters that the alliance is likely to halt oil production increases for three months starting from October after completing the planned return of volumes following voluntary cuts.
Oil prices have been volatile due to the U.S.-Israeli war on Iran, which disrupted global crude oil flows, especially with the de facto closure.
Prices fell by about 5% on Tuesday to their lowest level in two weeks amid hopes for renewed serious efforts to end the conflict between the United States after a temporary halt in confrontations.
U.S. President Donald Trump, who stopped a two-week U.S. bombing campaign at the start of the week, told Fox News on Tuesday that there were “good talks” with Iran, but threatened further strikes if negotiations collapsed, while Iran denied seeking to resume talks with the United States.
Kazem Gharibabadi, Iranian Deputy Foreign Minister for Legal and International Affairs, said the Strait of Hormuz would remain closed if Oman did not agree to the Iranian proposal regarding the ship transit route, stressing that ongoing talks between Tehran and Oman are limited to opening a temporary passage in the strait.
Gharibabadi added, in an interview with Iranian state television, that Oman proposed a route half of which lies in Iranian waters and the other half in Omani territorial waters, but Tehran rejected this.
He continued that Tehran’s proposal stipulates that half of the route be in Iranian waters, and that part of the route in Omani waters also be subject to Iranian control.
Kermit
Kermit is a small town in the state of Texas, USA, best known for its history tied to the oil industry, which flourished in the 20th century. The town’s name comes from a fictional character, but it also became famous due to a gas station that inspired Jim Henson’s famous phrase “Kermit the Frog.” Today, Kermit remains a symbol of American rural culture and economic development in western Texas.
Texas
Texas is a state in the southern United States, known for its history as an independent republic between 1836 and 1845 before joining the Union. It was inhabited by various native tribes, then colonized by the Spanish and Mexicans, and its struggles for independence, such as the Battle of the Alamo, deeply shaped the local culture. Today, Texas is renowned for its diverse economy, from oil and agriculture to technology, and for its iconic symbols like cowboys and country music.
Washington
Washington, D.C., the capital of the United States, is a city with a rich history, founded in 1790 on the banks of the Potomac River. It is home to the White House, the Capitol, and numerous national monuments, serving as the political and cultural center of the country. The city has witnessed major historical events, from the Civil War to civil rights movements.
Iran
Iran is a country with a rich history and fascinating culture, being the heir to great ancient empires such as the Persian Empire. It experienced major events like the Arab conquest in the 7th century, which brought Islam, and the Islamic Revolution of 1979, which profoundly transformed the country’s political and social structure. Today, Iran is known for its impressive architecture, such as the ruins of Persepolis and mosaic-decorated mosques, as well as its artistic and literary traditions.
Strait of Hormuz
The Strait of Hormuz is a strategic waterway located between the Persian Gulf and the Gulf of Oman, holding crucial importance for global oil transport. Historically, it has been a vital transit point for trade and regional conflicts, mentioned since antiquity as the “Persian Strait.” Today, about 20% of the world’s oil passes through this strait, making it one of the most sensitive geopolitical areas in the world.
Oman
Oman is a country in southeastern Arabia, with a rich history as a maritime trading center, known for its colonial empire in East Africa and Zanzibar. Its capital, Muscat, features traditional architecture and fortresses, reflecting Portuguese and Ottoman influences. Today, Oman is renowned for its diverse landscapes, from deserts to mountains and beaches, and for preserving cultural traditions.
Tehran
Tehran, the capital of Iran, is a city with a rich history, becoming the political and cultural center of the country starting in the 18th century when it was chosen as the royal seat by the Qajar dynasty. Over time, the city underwent rapid modernization, especially during the Pahlavi dynasty, while preserving historical landmarks such as the Golestan Palace and the Grand Bazaar. Today, Tehran is a vibrant mix of tradition and modernity, reflecting Iran’s social and political transformations.
