Oil prices steady on Wednesday

Oil prices steadied in Asian trade on Wednesday after dropping about 2 per cent in the previous session, as investors weighed progress in US–Iran nuclear talks while remaining cautious about the prospects of a final deal.

Brent crude rose 15 cents, or 0.22 per cent, to $67.57 a barrel by 0737 GMT, while US West Texas Intermediate (WTI) gained 12 cents, or 0.19 per cent, to $62.45. Both benchmarks hovered near two-week lows.

Iran and the United States reached an understanding on key “guiding principles” to address their long-running nuclear dispute. Still, Iran’s Foreign Minister Abbas Araqchi said a final agreement is not imminent. Analysts said prices could see a technical rebound, though doubts persist over the durability of diplomatic momentum.

Tensions remained elevated as Iran and Russia prepared to hold joint naval drills in the Sea of Oman and the northern Indian Ocean on Thursday, days after Iran’s Revolutionary Guards conducted exercises in the Strait of Hormuz. Political consultancy Eurasia Group said it sees a 65 per cent probability of US military strikes against Iran by the end of April.

Markets are also awaiting weekly US inventory data from the American Petroleum Institute and the Energy Information Administration. Analysts expect crude stockpiles to have risen by about 2.3 million barrels last week, while gasoline inventories likely fell by around 200,000 barrels, and distillates dropped by roughly 1.6 million barrels.

Meanwhile, US-brokered talks between Ukraine and Russia concluded their first day in Geneva, with President Donald Trump urging Kyiv to move swiftly towards an agreement to end the four-year conflict, a development analysts said could influence oil’s geopolitical risk premium.

Attribution: Reuters