Oil slips as Iran-Oman Hormuz talks weigh on prices

Oil prices settled lower Wednesday as investors weighed Iran-Oman talks on the Strait of Hormuz and a smaller-than-expected rise in US crude stocks. Brent fell 0.84% to $87.84, while West Texas Intermediate dropped 0.16% to $82.23. Both benchmarks hit their lowest levels since August 10 on hopes of increased strait traffic, but pared losses after US crude inventories rose by just 95,000 barrels last week, below the 597,000-barrel forecast. Analysts said the talks shifted market sentiment from pricing prolonged disruption toward negotiated shipping arrangements. Iran and Oman are finalizing agreement details on the strait, a key route for about a fifth of global oil supplies before the US-Israeli war on Iran began in February. Only five commodity vessels transited Tuesday, down from the 10-day average of 15.