Oil prices pushed higher Thursday on worries that nuclear talks between US and Iran might not avert a new conflict that could threaten supplies.
"Oil is extending its gains, with Brent crude back above $70 a barrel... as fears of a military confrontation between the US and Iran rattled energy markets," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
"Nuclear talks between the two sides appear to be going nowhere fast, and the geopolitical premium is clearly back in play,"he added.
On top of that, API reported an across the board draw in energy inventories.
“The failure to resolve core areas of contention continues to tip the scales in favor of another military confrontation,”RBC Capital Markets analysts including Helima Croft said in a note.
“The massive buildup of US military assets in the region as well as the recent Iranian naval exercise in the Strait of Hormuz seem to suggest that the launch sequence for a second military conflict has commenced.”
Will the official data confirm API's draws and build (pun intended) on the geopolitical risk premia in crude prices...
Crude -9.014mm - biggest draw since Sept 2025
Cushing -1.095mm - biggest draw since Jun 2025
Gasoline -3.21mm - biggest draw since Oct 2025
Source: ZeroHedge News
