SULAIMANI (ESTA) — Oil prices were steady on Wednesday as concerns a possible resumption in Iranian supply would cause a glut were offset by hopes for stronger U.S. fuel demand after a drop in weekly inventory estimates by the American Petroleum Institute.
Brent crude oil futures gained 47 cents at $68.97 a barrel by 0706 GMT, while U.S. West Texas Intermediate (WTI) was at $66.21 per barrel, up 14 cents.
Both benchmarks edged higher on Tuesday, ending at their highest levels in a week, amid hopes for rising demand from the approach of the northern hemisphere’s summer driving season and lifting of coronavirus restrictions.
Citing API figures on Tuesday, two market sources told Reuters that U.S. crude oil and fuel inventories fell last week.
Crude stocks fell by 439,000 barrels in the week ended May 21. Gasoline inventories fell by 2 million barrels and distillate stocks fell by 5.1 million barrels, the sources added.
“The API data was good, but investors were paying more attention to the Iran talks because the impact from possible return of Iranian oil to the market is more significant,” Reuters quoted chief analyst at commodities broker Fujitomi Co. Kazuhiko Saito as saying.
Iranian government spokesman Ali Rabiei said on Tuesday that he was optimistic over Iran reaching an agreement soon at talks with world powers to revive a 2015 nuclear deal. Iran’s top negotiator, however, cautioned that serious issues remained.
