WTI crude oil futures climbed more than 2% on Wednesday to trade above $65 per barrel, nearing their highest level since September, amid renewed tensions in the Middle East. Media reports indicated that Washington may consider intercepting tankers transporting Iranian crude and could deploy an additional carrier strike group if negotiations over Iran’s nuclear program collapse. Although initial talks last week were described as positive, traders remain concerned that failed negotiations could prompt US strikes on Tehran, threatening Iranian oil exports or provoking retaliatory action.
Gains were limited, however, by a US industry report pointing to a sharp increase in crude inventories. Stockpiles rose by 13.4 million barrels last week, potentially the largest weekly build since November 2023 if confirmed by official government data. Market participants are now awaiting OPEC’s monthly oil market report due later today, followed on Thursday by the IEA’s assessment, which has warned that global supply is likely to exceed demand this year, resulting in a substantial surplus.
