Oil prices ticked up during Thursday's Asian session, following losses of 0.7% on Wednesday as an unexpected rise in United States crude and fuel inventories sparked fresh concerns about demand, while market sentiment remained cautious ahead of renewed nuclear negotiations between Iran and the United States.
By 3 pm AEST (5 am GMT) Brent crude futures gained $0.04 or 0.1% to US$64.95 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $0.10 or 0.2% to $61.67 per barrel.
Data released by the U.S. Energy Information Administration (EIA) on Wednesday showed that crude oil inventories rose by 1.3 million barrels to 443.2 million barrels in the week ending 16 May, versus an expected draw of 1.85 million barrels.
In parallel, geopolitical developments added to market caution. Oman’s foreign minister announced that the fifth round of nuclear talks between Iran and the U.S. is scheduled to take place on 23 May in Rome.
Analysts at ANZ noted, “Iranian exports of crude have been rising in recent months, according to ship tracking data. This is despite U.S. sanctions remaining in place. However, the prospect of a broader conflict in the Middle East could have implications for supply from other producers in the region. Iran and its proxy groups have threatened to disrupt oil shipments across the region in the past.”
Heightening tensions, CNN reported on Tuesday that U.S. intelligence sources believe Israel may be preparing to strike Iranian nuclear facilities. The report cited multiple U.S. officials and indicated that it was unclear whether a final decision had been made by Israeli leadership.
