- Oil prices rose as Middle East tensions and possible US military moves outweighed US crude stock surge
- WTI climbed above $64 per barrel, Brent crude neared $69 despite a 13.4 million barrel US stock increase
- US may seize Iranian crude tankers and deploy a second aircraft carrier if talks with Tehran fail
Oil prices climbed on Wednesday as escalating Middle East tensions and the potential for new U.S. military deployments outweighed a massive surge in American crude inventories.
West Texas Intermediate (WTI) rose above $64 a barrel, while Brent crude traded near $69. The gains came despite a report from the American Petroleum Institute (API) showing U.S. crude stockpiles swelled by 13.4 million barrels last week—the largest weekly jump since late 2023.
Market sentiment shifted toward supply risks following reports that the U.S. is considering the seizure of tankers carrying Iranian crude, according to Bloomberg.
Additionally, Washington signalled it may deploy a second aircraft carrier strike group to the region if nuclear negotiations with Tehran falter. President Donald Trump, scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House later Wednesday, remarked that Tehran "wants to make a deal," though he warned of consequences if diplomacy fails.
The India Perspective
For India, the world's third-largest oil consumer, the geopolitical friction coincides with a major recalibration of its energy sourcing. As part of a landmark trade deal signed last week, the Trump administration announced that India has committed to halting crude imports from Russia. In exchange, the U.S. removed 25% punitive tariffs on Indian goods.
While New Delhi has not explicitly confirmed a total ban, citing "energy security," recent actions suggest a pivot. On February 6, the Indian Coast Guard intercepted three oil tankers west of Mumbai suspected of being part of an Iranian "shadow fleet" used to evade sanctions.
Traders are now awaiting official inventory data from the U.S. government and a monthly outlook report from OPEC later today. The International Energy Agency (IEA) is also expected to release an analysis on Thursday, which has previously warned of a global surplus in 2026 as production in the Americas continues to outpace demand.
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