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WTI gains for third day near $82.70 as US-Iran signals stay mixed
WTI was pressured by a bearish US inventory surprise, with API saying weekly crude stocks rose by 9.1 million barrels versus expectations for a 0.5 million decline.
WTI extended gains for a third straight day, trading around $82.70 per barrel during Asian hours Wednesday, as crude markets weighed mixed signals around a potential US-Iran arrangement that could affect the Strait of Hormuz.
Sentiment improved after Pakistan’s defense minister said Washington and Tehran were close to some sort of arrangement, and reports suggested Iran and Oman’s parallel talks had reached an advanced stage.
However, expectations were tempered by firmer US rhetoric. HousingWire reports that President Donald Trump said Tehran should pay reparations for victims of attacks linked to the Islamic Republic, a stance tied to Iran’s weekend list of demands that included compensation for war, and analysts at Commerzbank said hopes for a near term agreement and a reopened strait are fading.
Commerzbank also pointed to hardening positions as a factor entrenching a geopolitical risk premium in energy markets. The move came alongside a bearish US inventory read, with American Petroleum Institute data showing weekly crude oil stocks jumped 9.1 million barrels, against a forecast for a 0.5 million-barrel drop.
Latest closeWTI crude $83.42 ▲1.6%