SINGAPORE / RankWire.AI / – Oil prices fell further on Wednesday after a steep two-day selloff pushed Brent and U.S. crude to three-week lows. Brent crude futures dropped 92 cents, or 1.2%, to $78.44 a barrel by 3:30 a.m. GMT. West Texas Intermediate crude lost $1.07, or 1.4%, to trade at $74.70. Brent had declined more than 12% during the week, while WTI had fallen over 11%.
The renewed losses followed Tuesday’s sharp retreat across global energy markets. Brent settled 5.3% lower at $79.36 a barrel, marking its first close below $80 since July 13. WTI ended the session down 5.7% at $75.77. Both contracts recorded their lowest settlements in three weeks. The declines added to Monday’s losses, when Brent dropped 7% and WTI fell 5.1%.
Developments involving Iran, Qatar and the United States remained a central focus for crude traders. Qatar reported progress in mediation aimed at ending the conflict and restoring shipping through the Strait of Hormuz. The Qatari emir also discussed the situation with U.S. President Donald Trump. Iran rejected Trump’s statement that direct negotiations had started. Tehran said officials had not arranged any meetings, and no final agreement had emerged by Wednesday morning.
Crude benchmarks extend steep weekly losses
The Strait of Hormuz carries a major share of global energy shipments and remains vital to international oil and gas trade. Before the conflict, about one-fifth of global oil and liquefied natural gas shipments moved through the waterway. Disruptions to vessel traffic contributed to large price swings during July. Brent traded between $72 and $102 during the month. Shipping activity through the strait had not returned to its previous level by early Wednesday.
Iran and Oman also continued work on a plan linked to reopening the key passage. Public statements connected that process with separate action concerning the U.S. blockade of Iranian ports. No completed arrangement had taken effect during early Asian trading. Brent had climbed above $100 a barrel in July before falling below $80 this week. WTI followed the same broad direction as conditions affecting Gulf shipping changed.
Government inventory report comes into focus
The U.S. Energy Information Administration planned to publish its weekly petroleum status report later Wednesday. The report measures domestic crude oil, gasoline and distillate inventories. It also provides figures for production, imports and refinery operations. Traders use the data to assess supply and fuel demand in the world’s largest oil-consuming economy. The latest official numbers had not appeared when Asian markets recorded Wednesday’s early price declines.
In its July outlook, the U.S. Energy Information Administration forecast that Brent would average $74 a barrel during the third quarter of 2026. The agency also projected U.S. crude production of 13.8 million barrels per day for the year. Its forecast reflected higher expected supply and smaller global inventory declines than previously estimated. The agency projected that worldwide stocks would fall by 2.2 million barrels per day during the third quarter. Brent remained above the quarterly forecast despite its sharp weekly drop.