Oil Ticks Up After Two-Day Plunge as Traders Assess Ceasefire
Oil prices rose as traders assessed the Iran-Israel ceasefire and a US government report showing a large drop in US crude stockpiles.
US crude inventories fell for a fifth week, dropping by 5.8 million barrels to an 11-year seasonal low.
The oil market is stabilizing after a wild ride, marked by the biggest daily price swing in almost three years.
Oil edged higher — clawing back from the biggest two-day decline since 2022 — as traders assessed the Iran-Israel ceasefire and a government report that pointed to a large drop in US crude stockpiles.
Brent crude rose to trade near $68 a barrel, after slumping 13% over the past two days. President Donald Trump said the US would hold a meeting with Iran next week, but cast doubt on the need for a diplomatic agreement following the American bombing of its three main nuclear sites. He declared the tensions in the region as “over.”
Meanwhile, US government data released Wednesday showed that US crude inventories fell for a fifth week, dropping by 5.8 million barrels to sit at an 11-year seasonal low. Levels at Cushing, Oklahoma, the delivery point for West Texas Intermediate, declined to the lowest since early February.
The dust is beginning to settle in a global oil market that has been on a wild ride this week, marked by the biggest daily price swing in almost three years. The rocky trading has been amplified by huge trading volumes in options markets, while the closely-watched oil futures curve has also returned to its pre-war levels.
Source: Bloomberg
