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On Wednesday morning, global oil prices continued to rise, consolidating the positive dynamics of the previous session. The main drivers of the market were new US sanctions against Iran’s energy sector, a decline in US oil inventories, and President Donald Trump’s change in tone towards the Fed and China. Oil prices showed a significant increase due to these factors, Reuters reports.
Brent rose by $0.55 (0.8%) to $67.99 per barrel, and WTI by $0.54 (0.9%) to $64.21 as of 04:00 GMT, according to market data. Watching oil prices remains an important part of market analysis.
Sanctions against Iran: a blow to oil and LNG logistics
On Tuesday, the US Treasury announced new sanctions against Iranian oil tycoon Seyyed Asadullah Emamjomeh, who is accused of transporting hundreds of millions of dollars of Iranian liquefied natural gas (LNG) and oil to foreign markets through a complex corporate network. The impact on oil prices will be significant.
“The new US sanctions against Iranian energy suppliers have raised concerns about the stability of global supplies,” explained Priyanka Sachdeva, senior analyst at Phillip Nova.
US oil stocks fall: support from statistics
The market’s positive sentiment was also supported by information about a 4.6 million barrels per week decline in US crude oil stocks, according to the American Petroleum Institute (API), which is significantly higher than analysts’ expectations, who had forecast only an 800,000 barrel decline. Such data affect oil prices on the market.
Official statistics from the US government are expected on Wednesday at 14:30 GMT. Oil prices may react to this data.
Trump is “softening”: prospects for China and the Fed
The market is also focusing on Donald Trump’s statement, who this week abandoned the idea of firing Fed Chairman Jerome Powell after several days of criticism over high rates. The president also hinted at the possibility of reducing tariffs on Chinese imports, which had previously put pressure on the market. The path to oil price stability includes these policy decisions.
“I’m going to be nice in negotiations with China. After the deal, tariffs will go down, but not to zero,” Trump said.
At the same time, US Treasury Secretary Scott Bessent admitted that negotiations with China have not yet begun and will be a “slow process”.
The trade wars between the US and China remain a risk factor for the oil market, as they could slow global economic growth, which directly affects energy demand and oil prices.
