Oil prices traded higher during Wednesday's Asian deals as continued United States–Iran negotiations and broader geopolitical uncertainty provided support, while traders awaited clearer direction from official U.S. inventory data.
By 3 pm AEDT (4 am GMT), Brent crude futures rose 55 cents or 0.8% to US$69.35 per barrel, while U.S. West Texas Intermediate crude added 56 cents or 0.9% to $64.52.
Market sentiment was underpinned by developments surrounding Iran’s nuclear discussions with Washington. Iran’s foreign ministry spokesperson said on Tuesday that talks with the U.S. had enabled Tehran to assess Washington’s seriousness and had revealed sufficient common ground to continue diplomatic efforts.
Diplomats from both countries met in Oman last week in an attempt to revive negotiations, after U.S. President Donald Trump deployed a naval flotilla to the region.
ANZ analysts commented in a note to clients: "Hopes of a peaceful resolution were dashed later in the session after Axios reported that the U.S. might send a second aircraft carrier to the Middle East if talks fail. This comes after the U.S. Department of Transportation issued a maritime advisory that warned American-flagged ships should stay as far away as possible from Iranian waters.
"In another support to prices, assessments by eastern NATO member states Poland and Estonia reveal that Russia has no intention of ending its war in Ukraine."
On the supply side, industry data pointed to a sharp build in U.S. crude stockpiles. The American Petroleum Institute reported that U.S. crude inventories increased by 13.4 million barrels in the week ended 6 February.
Investors are now awaiting official weekly inventory figures from the Energy Information Administration, due later on Wednesday. Markets are expecting crude stockpiles to have risen by around 800,000 barrels over the same period.
