Crude Oil Market Update: WTI Oil Slips in Price as Diplomacy Takes the Wheel
WTI crude oil dipped below the $63 mark on Friday, trading around $62.85 during Asian market hours, as traders turned cautious ahead of US-Iran talks in Oman. The discussions have revived hopes of easing the geopolitical tensions between the two powers—but also raised the possibility of more Iranian oil eventually entering global markets.
Iran is expected to center talks on its nuclear program, while Washington wants a broader agenda that includes missiles, regional influence, and human rights issues. The prospect of dialogue has a cooling effect on some geopolitical risk premium in oil prices, while skepticism remains over whether a meaningful deal is achievable.
Still, losses were capped by a bullish data point at home: US crude inventories fell by 3.455 million barrels last week, well above expectations, according to the EIA. Bottom line? Diplomacy is dragging prices down—for now—but tight supply is keeping oil from a deeper slide.
“According to the US Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending January 30 fell by 3.455 million barrels, compared to a decline of 2.296 million barrels in the previous week. The market consensus was for a decrease of 2 million barrels. The significant drop in crude inventories might help limit the WTI’s losses.“
