Crude climbed 3% as traders weigh US-Iran talks, while US inventories decline
Oil prices edged higher on Thursday as traders weighed conflicting signals over the status of nuclear negotiations between the United States and Iran, a dynamic that has intensified speculation about potential US military action
Oil prices edged higher on Thursday as traders weighed conflicting signals over the status of nuclear negotiations between the United States and Iran, a dynamic that has intensified speculation about potential US military action and its impact on global supply.
Brent settled $2.13 higher, or 3.16%, at $69.46 a barrel.
WTI rose $1.93, or 3.05%, to $65.14 a barrel.
Prices rallied earlier in the session after reports that Washington had declined Tehran’s request to alter the location and format of planned talks, according to Axios, citing two US officials. Heightening market sensitivity, US President warned in an interview that Iran’s Supreme Leader Ayatollah Ali Khamenei “should be very worried,” comments traders interpreted as increasing the risk of confrontation.
Market participants remain attentive to geopolitical risk in the Middle East, where any escalation involving the United States and Iran could threaten key shipping routes and disrupt Iran’s roughly 3.3 million barrels-per-day of crude output.
Supporting the bullish tone, data from the US Energy Information Administration (EIA) showed a larger-than-expected draw in domestic crude inventories last week amid severe winter weather. US crude stocks declined by 3.5 million barrels to 420.3 million barrels, while domestic oil production dipped to its lowest level since November 2024. Analysts in a poll had forecast a 489,000-barrel increase.
Written by: Farid Muzaffar