WTI crude oil futures climbed back above $64 per barrel on Wednesday, erasing losses from the previous session, as persistent tensions between the US and Iran lent support to prices. Media reports indicated that Washington may consider intercepting tankers transporting Iranian crude and could deploy an additional carrier strike group if talks over Iran’s nuclear program break down. Although last week’s initial negotiations were described as constructive, traders remain concerned that a failure in diplomacy could trigger US strikes on Tehran, threatening Iranian oil exports or provoking retaliation.
Upside momentum was limited, however, by a US industry report pointing to a sharp increase in crude inventories. Stockpiles rose by 13.4 million barrels last week, which, if confirmed by official figures, would mark the largest weekly build since November 2023. Market participants are also awaiting OPEC’s monthly oil market report due later today, followed on Thursday by an IEA outlook that has warned global supply is likely to exceed demand this year, resulting in a significant surplus.
