Oil Prices Extend Losses on Hopes of Hormuz Breakthrough

PUKMEDIA

Oil prices.

Oil prices fell further on Wednesday as investors reacted to growing optimism over a possible agreement between the United States and Iran to reopen the Strait of Hormuz, easing concerns over global crude supplies.

Brent crude futures fell 92 cents, or 1.2 per cent, to $78.44 a barrel, while US West Texas Intermediate (WTI) crude declined $1.07, or 1.4 per cent, to $74.70 a barrel. Both benchmarks have lost more than 11 per cent so far this week.

Market sentiment improved after US Treasury Secretary Scott Bessent said negotiations with Iran were continuing and suggested an agreement to reopen the strategic waterway could be reached within days. The prospect of restoring shipping through the Strait of Hormuz has reduced fears of supply disruptions, putting downward pressure on oil prices.

Despite the recent decline, analysts cautioned that geopolitical risks remain. Any setback in the negotiations or renewed disruption to shipping through the Strait of Hormuz could quickly reverse the market's recent losses.

Investor sentiment was also influenced by industry data showing a 2.7 million-barrel increase in US crude inventories last week. Traders are now awaiting official figures from the US Energy Information Administration for further indications of supply and demand trends.


PUKMEDIA