FX.co ★ Oil Steadies on Wednesday

West Texas Intermediate (WTI) crude oil futures remained stable at approximately $63.2 per barrel on Wednesday. This steadiness reflects a complex interplay between escalating geopolitical tensions in the Middle East and a reduction in US crude stockpiles. Iranian Foreign Minister Abbas Araghchi and US envoy Steve Witkoff are slated to engage in indirect discussions in Oman this Friday, focusing on Iran's nuclear program and potential sanctions relief. These talks occur amid heightened concerns over possible conflict in a region responsible for about one-third of the world's crude oil supply. Tensions have risen following the US's decision to down an Iranian drone and President Donald Trump's threats of military intervention. In addition, a US-flagged tanker, the Stena Imperative, recently faced harassment from small armed vessels in the strategically significant Strait of Hormuz. On the supply side, the US Energy Information Administration reported a decrease in crude inventories by 3.5 million barrels last week. This reduction was less substantial than the anticipated 11.1 million barrels decline forecast by the American Petroleum Institute (API) on Tuesday.