Oil prices stabilized during Asian trading on Wednesday after dropping roughly 2% in the previous session. Investors continued to evaluate developments in U.S.–Iran negotiations, while remaining cautious about the likelihood of a final agreement that could ease global oil supply concerns.
Brent crude futures gained 15 cents, or 0.22%, to $67.57 per barrel by 07:37 GMT. U.S. West Texas Intermediate (WTI) crude rose 12 cents, or 0.19%, to $62.45 per barrel. Despite the modest rebound, both benchmarks are hovering near two-week lows.
US–Iran talks offer progress, but uncertainty remains
Iran and the United States reportedly reached an understanding on key “guiding principles” in discussions aimed at resolving their long-running nuclear dispute. However, Iranian Foreign Minister Abbas Araqchi cautioned that this does not signal an imminent agreement.
Market analysts remain skeptical about the pace and durability of diplomatic progress. According to Sugandha Sachdeva, founder of SS WealthStreet in New Delhi, crude oil prices may see a short-term technical rebound. Still, she noted that a finalized deal appears distant, keeping traders cautious.
Adding to geopolitical tensions, Iran and Russia are set to conduct joint naval drills in the Sea of Oman and the northern Indian Ocean. The exercises follow recent military drills by Iran’s Revolutionary Guards in the Strait of Hormuz, a critical global oil transit route.
Political consultancy Eurasia Group said it sees a 65% probability of U.S. military strikes against Iran by the end of April, underscoring the fragile geopolitical backdrop.
US inventory data and global tensions in focus
Oil markets are also closely watching weekly U.S. inventory data. Reports from the American Petroleum Institute are due later Wednesday, followed by official data from the Energy Information Administration on Thursday.
Analysts surveyed by Reuters expect U.S. crude oil stockpiles to have increased by approximately 2.3 million barrels in the week ending February 13. Meanwhile, gasoline inventories are projected to decline by around 200,000 barrels, and distillate stocks — including diesel and heating oil — are estimated to have fallen by about 1.6 million barrels.
In parallel, negotiations between Ukraine and Russia concluded their first day of U.S.-brokered peace talks in Geneva. U.S. President Donald Trump urged Kyiv to move quickly toward a deal to end the four-year conflict.
Analysts warn that any major shift in the geopolitical landscape could introduce additional risk premiums into oil prices, further influencing market volatility.
