Global oil prices advanced on Wednesday, with Brent crude edging closer to the $ 70-per-barrel threshold amid renewed geopolitical concerns and stronger demand signals from Asia.
As of 10:00 a.m. West Africa Time (WAT):
- Brent crude traded at $69.75 per barrel, up $0.95 or 1.38%.
- West Texas Intermediate (WTI) stood at $64.91 per barrel, gaining $0.95 or 1.49%.
The upward movement reflects a combination of Middle East risk premiums and improving consumption trends, particularly from India.
Geopolitical Risk Supports Market
Oil markets remain sensitive to developments surrounding U.S.–Iran nuclear negotiations. Although diplomatic talks continue, traders have priced in elevated risk due to uncertainty over the outcome.
Reports indicating that the United States may consider deploying a second aircraft carrier to the Middle East if negotiations fail have heightened concerns about potential supply disruptions. The Strait of Hormuz, a critical global oil transit route, remains central to these risk calculations.
While diplomatic engagement has shown signs of progress, market participants continue to factor in the possibility of escalation, which has kept crude prices supported.
India’s Demand Shift Strengthens Prices
Beyond geopolitics, demand fundamentals have also improved. Indian refiners have increased purchases of mainstream crude grades as they reduce reliance on Russian supply. The shift comes amid broader trade discussions between New Delhi and Washington.
Higher Indian buying has helped absorb surplus barrels that weighed on the market in late 2025. Analysts note that as floating storage volumes normalize and Asian demand strengthens, near-term price support has improved.
Inventory Data in Focus
Traders are now awaiting official U.S. inventory figures from the Energy Information Administration (EIA). A Reuters poll estimated that crude stocks likely rose by about 800,000 barrels in the week to February 6. Meanwhile, distillate and gasoline inventories are expected to have declined.
Preliminary industry data from the American Petroleum Institute indicated a sharp 13.4 million barrel rise in crude inventories for the same period. If confirmed, the build could moderate further price gains.
Market Outlook
For now, geopolitical uncertainty continues to outweigh bearish inventory signals. The fragile nature of U.S.–Iran talks and shifting global trade flows remain key drivers of sentiment.
Should tensions persist and Asian demand stay firm, Brent may test and potentially break above the $70 per barrel level in the near term. However, traders will closely monitor inventory trends and diplomatic developments to gain a clearer direction.