Feb 08, 2022 11:45 PM ET
By: AnalysisWatch
Oil prices climbed on Wednesday after two losses as industry data showed an unexpected drop in U.S. crude and fuel inventories, offsetting concerns about a possible surge in supplies from Iran.
Brent crude futures were up 41 cents, or 0.5 percent, to $91.19 a barrel by 0422 GMT, while West Texas Intermediate crude was up 38 cents, or 0.4 percent, to $89.74 a barrel.
U.S. crude oil, gasoline, and distillate inventories fell last week, market sources said, citing figures from the American Petroleum Institute on Tuesday. Crude inventories fell by 2 million barrels, according to the API, while analysts had expected an increase of 400,000 barrels.
More data from the U.S. EIA will be available at 10:30 a.m. EST (1530 GMT).
Still, concerns about a possible nuclear deal with Iran that could unleash more oil on world markets weighed on prices.
Brent and WTI fell about 2% for a second straight day on Tuesday after Washington resumed indirect talks with Iran to revive a nuclear deal. Such a deal could lift US sanctions on Iranian oil and quickly restore oil to the market, although a number of key issues still need to be resolved.
Oil prices near $100 per barrel could also entail higher production in the United States. The Energy Information Administration projects that US crude oil production will increase by 770,000 barrels per day to 11.97 million bpd by 2022.
Concerns about Ukraine calmed in Europe as French President Emmanuel Macron said he believed steps could be taken to de-escalate the crisis after a meeting with Russian President Vladimir Putin and urged all sides to remain calm.
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