West Texas Intermediate (WTI) crude oil hovered near $61.10 during Asian trading on Thursday, edging lower amid reports of renewed nuclear negotiations between the United States and Iran scheduled later this week.
Tensions escalated on Tuesday after the US received intelligence indicating that Israel may be preparing strikes on Iranian nuclear sites, despite President Donald Trump’s ongoing diplomatic efforts with Tehran. While Israeli officials have not confirmed any final decision, according to CNN citing anonymous sources, such an attack could derail the talks and further destabilize the Middle East — a region responsible for roughly one-third of global oil supply.
The next round of US-Iran nuclear discussions is set for Friday in Rome, with any progress potentially capping WTI’s price gains.
On the supply side, the US Energy Information Administration (EIA) reported a 1.328 million barrel increase in US crude inventories for the week ending May 16, falling short of market expectations which forecasted a 1.85 million barrel decline. The previous week saw a larger build of 3.454 million barrels.
Market participants are now closely watching key US economic data due later Thursday, including the advanced S&P Purchasing Managers Index (PMI), Chicago Fed National Activity Index, Initial Jobless Claims, and Existing Home Sales. Weak economic signals could weigh on the US dollar, potentially supporting commodity prices like WTI in the near term.
