Commercial crude oil stockpiles, excluding the Strategic Petroleum Reserve, rose by 95,000 barrels to 428.9 million barrels in the week ended Aug. 21.
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Hormuz talks offer some supply relief, but shipping remains constrained as U.S. crude inventories rise and WTI and Brent extend their declines.
Oil fell in early trade on signs of Middle East talks, which could lead to reduced supply disruptions.
U.S. oil prices fell in early trade on Wednesday, extending the previous session's losses, on hopes the Strait of Hormuz could reopen after Iran said it had resumed talks with neighbour Oman on managing the strategic waterway.
Eco (Atlantic) Oil & Gas Ltd (TSX-V:EOG, AIM:ECO) highlighted potential exposure to around 225mln barrels of prospective oil at the first selected drilling target on the PL001 licence in the North Falkland Basin, where partner Navitas Petroleum plans exploration drilling as part of its upcoming Sea Lion campaign. Navitas estimates the target contains a 2U prospective resource of 640mln barrels.
Crude oil's price action has been bearish even though headlines suggest bullish moves, says Carley Garner. She further explains the "disconnect" she sees in headlines centered on crude oil supply — and who benefits from higher prices.
Fewer than 20 commodity vessels transited the Strait of Hormuz at the weekend, shipping data showed on Monday, as Iranian and U.S. blockades restrict traffic through the chokepoint for energy shipments.
Oil fell in early Asian trade on possible position adjustments. The U.S. is expected to announce new economic sanctions against Iran on Monday.
Crude oil buyers hold control as limited Hormuz supply and strong refining margins keep sellers on the defensive.
While crude oil is up about 50% in 2026, gasoline and diesel have risen more sharply. And the refiners are along for the ride.
WTI and Brent remain bullish as Hormuz traffic falls sharply, while rising U.S. crude and natural gas inventories provide a domestic supply buffer.