DTN Oil Update
Oil Runs Up on Iran Tremors; U.S. Inventory Data Awaited
SECAUCUS, NJ (DTN) -- The rally in oil extended for a fifth straight session on Wednesday, driven by concerns about anti-government protests in Iran and potential U.S. responses that could impact supply from the fourth-largest OPEC producer.
Traders were also focused on weekly inventory data due at 10:30 a.m. ET from the U.S. Energy Information Administration that would show how domestic stockpiles are faring against a widening global glut.
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The American Petroleum Institute late on Tuesday reported that U.S. crude oil stockpiles increased for a second straight week, rising by 5.27 million bbl during the week ended January 12 -- more than triple the build reported the prior week.
In Iran, nationwide demonstrations entered their 17th day, with reports of nighttime clashes in several Tehran districts. The Associated Press says more than 2,500 people have died from the crackdown by Iranian security forces, citing human rights watch groups.
U.S. President Donald Trump added to market anxiety on Tuesday when he urged Iranians to heighten their protests and "take over" institutions in the Islamic republic which produces some 3.2 million bpd of crude oil.
Trump had also threatened to impose tariffs on any country that did business with Iran. That put the spotlight particularly on China, which reportedly buys more than 80% of Iran's oil.
Crude prices plummeted nearly 20% last year but have witnessed a robust recovery since early 2026 despite the International Energy Agency's warning of a 3.8 million bpd surplus.
This recovery follows the turmoil in Iran and the transition of Venezuela's output of 800,000 to one million bpd under United States administrative oversight.
NYMEX WTI for February delivery was up by $0.77, or 1.3%, to $61.92 bbl after a three-month high at $ 62.10.
The March ICE Brent futures contract rose by $0.87, or 1.4%, to $66.34 after rallying to $66.46.
Among refined products, the front-month ULSD futures climbed by $0.0089 to $2.2489 gallon. Front-month RBOB advanced by $0.0085 to $1.8643 gallon.