Oil prices found some footing in Asian trading on Wednesday, following a roughly 2% drop in the previous session, as investors assessed developments in U.S.–Iran negotiations while remaining cautious about the chances of a swift agreement that could ease supply risks.
Brent crude futures rose 15 cents, or 0.22%, to $67.57 a barrel by 0737 GMT. U.S. West Texas Intermediate (WTI) crude gained 12 cents, or 0.19%, to $62.45. Both benchmarks remained near their lowest levels in about two weeks.
Tehran and Washington agreed on key “guiding principles” during talks on Tuesday aimed at resolving their long-running nuclear dispute. However, Iranian Foreign Minister Abbas Araqchi stressed that such progress does not imply that a comprehensive deal is close.
Some analysts questioned how quickly negotiations could move forward.
“Crude oil prices look poised for a technical rebound … However, a finalised agreement remains distant, and markets remain cautious about the durability of diplomatic momentum,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
Separately, Iran and Russia are scheduled to carry out joint naval drills in the Sea of Oman and the northern Indian Ocean on Thursday, according to Iran’s semi-official Fars news agency. The exercises follow recent maneuvers by Iran’s Revolutionary Guards in the Strait of Hormuz.
Political risk advisory Eurasia Group wrote in a note on Tuesday that it assigns a 65% likelihood of U.S. military strikes against Iran by the end of April.
Attention is also turning to U.S. supply data, with the American Petroleum Institute set to publish its weekly inventory figures later Wednesday, followed by official statistics from the Energy Information Administration on Thursday.
A Reuters survey indicated that analysts expect U.S. crude stockpiles to have risen last week, while gasoline and distillate inventories likely declined.
Forecasts suggest crude inventories increased by about 2.3 million barrels in the week to February 13. Gasoline stocks are projected to have fallen by roughly 200,000 barrels, while distillate inventories — including diesel and heating oil — are seen dropping by around 1.6 million barrels.
Meanwhile, Ukrainian and Russian officials wrapped up the first day of U.S.-facilitated peace talks in Geneva on Tuesday, as President Donald Trump urged Kyiv to move swiftly toward a settlement to end the four-year war.
“Any shift in that geopolitical axis could add risk premium (to prices),” Sachdeva added.
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