Oil prices slipped slightly in Asian trading on Wednesday but stayed close to a one-month high. The market remained supported by fresh U.S. sanctions targeting a network of shipping firms and vessels, while traders awaited the upcoming OPEC+ meeting.
By 06:45 GMT, Brent crude fell 16 cents, or 0.2%, to $68.98 per barrel. U.S. West Texas Intermediate (WTI) crude dropped 13 cents, or 0.2%, to $65.46 per barrel. Both benchmarks had gained more than 1% in the previous session after the sanctions were announced.
The U.S. measures targeted companies and vessels linked to an Iraqi-Kittitian businessman accused of smuggling Iranian oil disguised as Iraqi exports. Analysts noted that these sanctions signal the possibility of tighter supply ahead, lending support to oil futures.
“Structural volatility remains, with sanctions on Iran and ongoing geopolitical risks keeping crude near its recent highs,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Attention also turned to the OPEC+ meeting scheduled for September 7. Analysts expect no major changes to production, though geopolitical concerns continue to influence price movements. “The market remains cautious, watching for signals of oversupply,” said Emril Jamil, senior analyst at LSEG.
Adding to bullish sentiment, U.S. crude stockpiles likely declined last week, along with gasoline and distillate inventories, according to a preliminary Reuters poll. Analysts estimated an average drop of about 3.4 million barrels for the week ending August 29.
However, weak U.S. economic data limited further gains. Manufacturing contracted for a sixth consecutive month as President Donald Trump’s tariffs weighed on business confidence and activity, dampening the demand outlook for oil.
