Oil prices edged lower on Wednesday, ahead of upcoming negotiations between the United States and Iran. Traders are also awaiting data on U.S. oil stocks.
By 4 p.m., the April contract for WTI crude oil was down 0.2% in New York, at $65.48. In London, the April contract for Brent crude was down less than 0.1% at $70.74 per barrel.
“The uncertainty about the geopolitical situation could leave the market directionless in the short term,” said Li Xing, a strategist at brokerage firm Exness. “Markets are focusing on the risks of further escalation of tensions between the United States and Iran ahead of the talks scheduled for Thursday in Geneva. Any escalation could threaten tanker traffic in the Strait of Hormuz, a crucial passage for maritime transport of crude oil,” she added.
The risk of oil oversupply in the market is also a concern, following the announcement by the American Petroleum Institute (API) on Tuesday of a significant increase in U.S. crude oil stocks, by more than 11.4 million barrels, in the past week.
Traders are waiting for the Energy Information Administration (EIA) data, which is expected to be released at 4:30 p.m. Paris time. Analysts surveyed by the Wall Street Journal forecast a rise of 1.2 million barrels in U.S. crude oil stocks for the week ending February 20, along with respective declines of 500,000 and 1.9 million barrels in gasoline and distillate stocks.
Agefi-Dow Jones The financial newswire
