Oil markets hold steady as US inventories fall and geopolitical tensions linger

On Wednesday, global oil benchmarks ended the day virtually unchanged, with Brent futures finishing at $108.82 a barrel and U.S. WTI at $97.15, after both had climbed above $2 earlier. The U.S. Energy Information Administration reported a draw of 3.06 million barrels in crude stocks, leaving inventories at 412.5 million barrels, a much larger decline than the 820,000-barrel drop forecast by analysts. Market participants cited the possibility of renewed Russia-Ukraine peace talks, following President Vladimir Putin’s agreement to resume U.S.-mediated negotiations, as a moderating factor for prices.

At the same time, attacks on vessels in the Strait of Hormuz continued, with at least two ships struck overnight, and Iran’s foreign minister Abbas Araqchi dismissed any prospect of dialogue with the United States. The Houthis also claimed responsibility for recent assaults on Saudi oil sites and airports, heightening concerns about regional supply disruptions. To counter rising diesel costs linked to the conflicts, the Department of Energy announced loans from the emergency heating-oil reserve, while two Energy Department officials said they are working with refiners worldwide to boost fuel output.