Oil held steady on Wednesday, finding support as the market waited for direction while US-Iran talks continued, with lingering geopolitical uncertainty helping to underpin prices.
Brent crude oil futures were up 23 cents, or 0.3 per cent, at $69.03 a barrel by 0100 GMT. US West Texas Intermediate crude rose 23 cents, or 0.4 per cent, to $64.19.
Iran’s foreign ministry spokesperson said on Tuesday that nuclear talks with the US allowed Tehran to gauge Washington’s seriousness and showed enough consensus to continue on the diplomatic track.
Diplomats from Iran and the US held talks in Oman last week in an effort to revive diplomacy, after US President Donald Trump positioned a naval flotilla in the region, raising fears of new military action.
While oil prices first eased after Oman’s foreign minister said discussions tied to the US-Iran talks with Iran’s top security official were productive, hopes of a peaceful resolution were later dashed following reports that the US may send a second aircraft carrier to the Middle East if talks fail, said ANZ analysts in a note.
Trump said on Tuesday he was considering sending a second aircraft carrier to the Middle East, even as Washington and Tehran prepare to resume negotiations aimed at averting a new conflict.
Traders are also waiting for weekly US oil inventory data from the Energy Information Administration on Wednesday. [EIA/S]
Analysts polled by Reuters estimated on average that crude inventories rose by about 800,000 barrels in the week to February 6, while distillate and gasoline inventories likely fell by about 1.3 million barrels and 400,000 barrels respectively.
US crude inventories rose by 13.4 million barrels in the week ended February 6, market sources said, citing American Petroleum Institute figures on Tuesday.
