Oil prices stabilized during Asian trading on Wednesday after sliding roughly 2% in the previous session, as traders evaluated signs of movement in U.S.–Iran discussions while remaining wary about the likelihood of a near-term agreement that could ease supply risks.
By 0737 GMT, Brent crude futures had gained 15 cents, or 0.22%, to $67.57 a barrel. U.S. West Texas Intermediate (WTI) crude rose 12 cents, or 0.19%, to $62.45. Both benchmarks hovered near two-week lows.
Tehran and Washington reached an understanding on Tuesday regarding the core “guiding principles” of talks aimed at settling their long-running nuclear dispute. However, Iranian Foreign Minister Abbas Araqchi cautioned that this did not signal that a final deal was close.
Market observers also expressed doubts about the pace of further progress.
“Crude oil prices look poised for a technical rebound … However, a finalised agreement remains distant, and markets remain cautious about the durability of diplomatic momentum,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
In a separate development, Iran and Russia are set to conduct joint naval exercises in the Sea of Oman and the northern Indian Ocean on Thursday, according to Iran’s semi-official Fars news agency. The drills follow military exercises carried out by Iran’s Revolutionary Guards in the Strait of Hormuz earlier in the week.
Political risk consultancy Eurasia Group said in a note to clients on Tuesday that it sees a 65% probability of U.S. military strikes against Iran by the end of April.
Investors are also awaiting fresh U.S. inventory data, with the American Petroleum Institute scheduled to release its weekly report later Wednesday, followed by official figures from the Energy Information Administration on Thursday.
A Reuters survey of analysts indicated expectations that U.S. crude stockpiles increased last week, while gasoline and distillate inventories likely declined.
Estimates suggest crude inventories rose by about 2.3 million barrels in the week to February 13. Gasoline stocks are seen falling by roughly 200,000 barrels, while distillate supplies—including diesel and heating oil—are expected to have dropped by approximately 1.6 million barrels.
Meanwhile, Ukrainian and Russian negotiators concluded the first day of U.S.-mediated peace talks in Geneva on Tuesday, as President Donald Trump called on Kyiv to move quickly toward an agreement to end the four-year conflict.
“Any shift in that geopolitical axis could add risk premium (to prices),” Sachdeva added.