Oil Steady Amid US-Iran Speculation
Oil prices moved slightly, as the market weighed two major factors: increasingly sensitive geopolitical tensions in the Middle East and a decline in US oil inventories—but not as sharply as expected.
The West Texas Intermediate (WTI) contract held near $63 per barrel, after rising 1.7% on Tuesday. The main focus now turns to the planned indirect Iran-US negotiations in Oman on Friday, according to Tasnim. Iran's semi-official media outlet said the talks would be limited to nuclear issues and sanctions relief.
Geopolitics is the main price driver
Fears of conflict in the Middle East—a region that supplies about a third of the world's crude oil—helped lift oil prices last month, even though the market began to see signs of a potential widening oversupply.
These negotiations came amidst a tense situation: the US shot down an Iranian drone, and President Donald Trump even threatened to attack Iran if no agreement was reached.
Equinor CEO Torgrim Reitan confirmed that geopolitical factors were indeed the main driver. He believes that fundamentally, a "fair price" could be lower than it is now, but given the constantly changing conditions, the ultimate direction is difficult to predict. (alg)
Source: Newsmaker.id
