Crude Oil Up 1% as US Sanctions on Iran and Declining Stockpiles Boost Market

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Oil prices climbed nearly 1% in early trading on Wednesday, continuing the gains from the previous day as investors responded to fresh sanctions on Iran, a decline in U.S. crude inventories, and a more conciliatory tone from President Trump regarding the Federal Reserve.

The market was buoyed after Trump eased his criticism of Fed Chair Jerome Powell, who had faced intensified attacks from the president for not lowering interest rates. Trump also hinted at the possibility of reducing tariffs on China.

Brent crude futures increased by 61 cents, or 0.9%, reaching $68.05 per barrel, while U.S. West Texas Intermediate crude rose 60 cents, or 0.94%, to $64.27 per barrel.

In addition, the U.S. imposed new sanctions targeting Iranian shipping magnate Seyed Asadoollah Emamjomeh and his network, which is accused of facilitating the export of Iranian LPG and crude oil worth hundreds of millions of dollars.

U.S. crude oil inventories also saw a reduction of approximately 4.6 million barrels last week, according to data from the American Petroleum Institute, ahead of the official government report later on Wednesday. Analysts expect an 800,000-barrel decline in stockpiles.

Meanwhile, Trump indicated that tariffs on Chinese imports could significantly decrease as part of a trade deal, but would not be completely eliminated. U.S. Treasury Secretary Scott Bessent also expressed optimism about de-escalating trade tensions, though he noted that talks with Beijing had not yet begun and would likely be a "slog."

Concerns over global economic slowdowns, fueled by trade tensions, have continued to pressure crude futures.

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author