Brent crude oil futures surged above $68 per barrel on Wednesday, extending a nearly 2% gain from the previous session, bolstered by fresh US sanctions and a sharp decline in crude inventories.
Brent extends gains
The US government imposed new restrictions on a prominent Iranian figure involved in LPG and crude shipping, sparking speculation that these sanctions could significantly curtail Iranian oil exports. Additionally, industry data revealed a notable drop in US crude stockpiles, with inventories falling by 4.6 million barrels last week—potentially the largest decline since November, should official data confirm the figure later today.
Broader market sentiment also improved, driven by comments from the Trump administration suggesting progress in trade negotiations with India and Japan, while emphasizing that the US-China trade impasse is unsustainable. Furthermore, President Trump’s assurance that he has no plans to remove Federal Reserve Chair Jerome Powell alleviated concerns about the potential political interference in US monetary policy, adding further support to investor confidence.
WTI also increases
Similarly, WTI crude oil futures climbed toward $65 per barrel on Wednesday, tracking Brent’s rally and benefiting from the same factors. As geopolitical and supply-side concerns weigh on the market, alongside improving trade relations, oil prices remain supported by ongoing volatility and market optimism. The combination of tightening supply and easing geopolitical tensions has provided a favorable backdrop for oil futures to extend their gains.
