West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $86.85 during the Asian trading hours on Wednesday. The WTI price falls as the US-Iran talks signal hope for Middle East peace. Traders brace for the release of the US Energy Information Administration (EIA) report, which will be published later on Wednesday.
Reuters reported on Tuesday that US President Donald Trump appears to be determined to reach a deal with Iran aimed at ending hostilities in the Middle East. This action came a day after Trump ordered a five-day delay of attacks on Iran's power plants, saying the US had talks with unnamed Iranian officials that produced "major points of agreement.”
Iran indicated that it prefers to negotiate with Vice President JD Vance rather than other US envoys, highlighting trust issues and adding uncertainty to already fragile ceasefire talks.
A rise in US crude oil inventories might contribute to the WTI’s downside. According to the American Petroleum Institute (API) report, crude oil stockpiles in the US for the week ending March 20 climbed by 2.3 million barrels, compared to a rise of 6.6 million barrels in the previous week. The market consensus was for a decline of 1.3 million barrels.
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