WTI crude futures held below $92 per barrel on Wednesday after plunging nearly 8% in the previous session, as investors looked ahead to a second round of peace talks between the US and Iran before the current two-week ceasefire expires. President Donald Trump reportedly signaled that negotiations could resume “within the next two days” in Pakistan, following the breakdown of discussions last weekend.
The US is maintaining a naval blockade on Iranian oil exports through the Strait of Hormuz, while Tehran is considering a temporary suspension of shipments via the key chokepoint to facilitate progress toward an agreement. At the same time, the IEA now expects global oil demand to contract this year for the first time since the 2020 pandemic, as high prices weigh on consumption.
On the supply side, data from the API showed US crude inventories rose by 6.1 million barrels last week, marking an eighth consecutive weekly build.
