Key facts
- Oil prices rose approximately 2% on Wednesday.
- Brent crude futures settled up 1.89% at $97.81 a barrel.
- WTI crude futures climbed 2.41% to $96.02 a barrel.
- Iranian missile launches toward Kuwait and Bahrain occurred.
- U.S. forces conducted strikes on Iran's Qeshm Island.
- EIA report showed a crude oil draw of 7.9 million barrels.
- Gasoline inventories saw a build of 3.3 million barrels.
- Natural gas prices edged up 2 cents to $3.18.
Oil prices rose around 2% on Wednesday, with Brent futures settling up 1.89% at $97.81 a barrel and U.S. West Texas Intermediate crude climbing 2.41% to $96.02. Renewed hostilities in the Middle East, including Iranian missile launches toward Kuwait and Bahrain, and U.S. strikes on Qeshm Island, fueled concerns about potential supply disruptions. Diplomatic talks between Tehran and Washington have shown little progress. Bob Yawger, director of energy futures at Mizuho, noted that the chances of a ceasefire seem to be deteriorating. Iranian Foreign Minister Abbas Araqchi stated that contacts with Washington have not been cut off but no progress has been made in negotiations. The EIA inventory report revealed a crude oil draw of 7.9 million barrels, bringing total stocks to 433 million barrels, falling below the five-year average. Gasoline inventories saw a build of 3.3 million barrels. Natural gas prices edged up 2 cents to $3.18 ahead of the upcoming EIA storage report, with consensus expectations calling for a build of 99 billion cubic feet.