Oil slips as investors focus on Hormuz talks

Elsewhere, Ukraine's military struck Lukoil's NORSI oil refinery in the Nizhny Novgorod region overnight, the Ukrainian General Staff said on Wednesday.

(Reporting by Georgina McCartey in Houston, Anushree Mukherjee in Bengaluru, Enes Tunagur in London, Yuka Obayashi in Tokyo and Siyi Liu in Singapore. Editing by Elaine Hardcastle, Mark Potter and Barbara Lewis)

Analysts said the talks between Iran and Oman had shifted the mood in the market.

"The market has moved from pricing a high probability of prolonged disruption and renewed escalation towards pricing partial reopening, negotiated shipping arrangements and a lower risk of renewed military confrontation," said Saxo Bank head of commodity strategy Ole Hansen.