DTN Oil Update
Oil Prices Rise Ahead of Iran Talks; US Inventory Report
SECAUCUS, N.J. (DTN) -- Oil and product futures were mostly higher Wednesday as both Iran and the U.S. indicated they would make little concession in talks over the White House's attempt to shut down Tehran's nuclear program.
The upside in crude prices was, however, limited by concerns over what the U.S. Energy Information Administration would report for last week's oil inventory balances in its regular weekly update due at 10:30 a.m. EST today.
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The American Petroleum Institute (API) cited on Tuesday, Feb. 24, a 11.4 million bbl build in crude during the week ended Feb. 20, while saying gasoline balances declined by 1.53 million bbl and distillates supply fell by 2.77 million bbl.
On the geopolitical front, traders were closely monitoring the potential outcome of U.S.-Iran talks scheduled in Geneva on Thursday, Feb. 26.
U.S. President Donald Trump said in a State of the Union Address in Washington on Tuesday that he would not allow Iran, a country he described as the world's biggest sponsor of terrorism, to have a nuclear weapon.
Iranian Foreign Minister Abbas Araqchi posted on the X social media site that a deal was within reach, but only if diplomacy was given priority. "We have proven that we will stop at nothing to guard our sovereignty with courage," he added.
NYMEX WTI for April delivery rose by $0.48 to $66.11 bbl, while the front-month ICE Brent futures contract advanced by $0.56 to $71.33 bbl.
Downstream, RBOB futures for March climbed $0.0288 to $2.0002. ULSD futures bucked the trend, with the front-month contract sliding by $0.0184 to $2.6685 gallon.
The U.S. Dollar Index edged up 0.03 points to 97.80 against a basket of currencies.