Crude oil futures gained in midday trading on Thursday after the White House Press Secretary reportedly said there were no negotiations underway with Iran despite diplomatic efforts by regional countries, reviving concerns that efforts to ease supply disruptions in the Middle East may be dwindling.
Front-month West Texas Intermediate crude climbed 0.6% to $82.74 per barrel, while Brent futures rose 1% to $88.77/bbl.
US commercial crude oil inventories increased by 100,000 barrels to 428.9 mmbbls in the week ended Aug. 21, the Energy Information Administration said in its weekly report released Wednesday.
Crude inventories are 1% above the five-year average for this time of year, the EIA said.
The build is below Investing.com's estimate of 1.6 mmbbl for the week ended Aug. 21.
Gelber & Associates strategists said that October WTI trades near $82.30/bbl, up $0.07 and essentially unchanged, as traders weigh tentative progress toward reopening the Strait of Hormuz against the risk that negotiations fail to restore normal shipping.
The White House reportedly said that no negotiations are happening between the US and Iran, but all options remain on the table.
White House Press Secretary Karoline Leavitt, in an interview with Fox News, said no negotiations are currently underway between the US and Iran. She noted that the situation was unlikely to change "until the president feels that maybe they come to the table in a meaningful way," and that this was yet to be seen.
On Thursday, Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani met with his Iranian counterpart to discuss the proposed interim framework, which includes establishing a temporary route in the Strait of Hormuz.
Al Thani's visit follows the visits by Omani and Pakistani officials as mediators step up efforts to revive stalled talks, amid a month-long pause in direct US military strikes on Iran.
On Wednesday, Iran and Oman agreed on a phased framework to facilitate the resumption of safe navigation through the Strait of Hormuz.
Saxo Bank strategists said that President Trump said 10 million barrels moved through the strategic waterway on Tuesday while repeating that the mines have been cleared.
However, US allies are privately warning that the strait is still likely mined, casting doubt on Trump's claim that the US Navy has completely removed and detonated explosives laid by Iran.
On the supply front, flows through the Hormuz remained subdued on Tuesday, with security risks still weighing on shipping activity, even as Iran and Oman agreed on a framework to restore safe navigation through the strategic waterway.
The strategic waterway recorded five confirmed vessel crossings, down 28.6% from seven a day earlier, MarineTraffic said. Traffic via Bab el-Mandeb also fell, with 36 confirmed crossings on Aug. 25, down 7.7% from 39 the previous day.