- WTI price gains momentum to near $65.60 in Thursday’s Asian session.
- The US and Iran are due to meet in Geneva on Thursday amid persistent tensions.
- US crude oil inventories rose the most in three years, EIA said.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.60 during the Asian trading hours on Thursday. The WTI price edges higher amid ongoing tensions between the US and Iran. Traders will closely monitor the developments surrounding US-Iran nuclear talks later on Thursday.
US President Donald Trump last week threatened to attack Iran if negotiations fail. Meanwhile, tens of thousands of US service members are at risk after Iran said that all US military bases in the Mideast would be considered legitimate targets. US and Iranian officials are due to meet in Geneva on Thursday for a third round of indirect talks. Any signs of escalating tensions between the two countries could boost the WTI price in the near term.
“That seemed to suggest that they are more open to talking about their nuclear program,” said Phil Flynn, an analyst at Price Futures Group. However, the risk of an attack on Iran is still high, he said.
On the other hand, a surge in weekly crude oil inventories could raise oversupply concerns and weigh on black gold. According to the Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending February 20 climbed by 15.989 million barrels, compared to a fall of 9.014 million barrels in the previous week. The figure rose the most in three years.
