(RTTNews) – Crude oil rose on Wednesday as investors turned their attention to Russia-Ukraine peace talks that began today in the United Arab Emirates and upcoming US-Iran talks in Oman. Additionally, market participants analyzed the US Energy Information Administration’s inventory data release.
WTI crude oil for March delivery was last seen trading $1.97 (or 3.12%) higher at $65.18 per barrel.
Talks between the US and Iran on Iran’s nuclear program are scheduled to take place in Muscat, Oman on Friday, according to Iran’s semi-official news agencies.
Iran expressed its disagreement with holding talks in Türkiye, which was the initially proposed location.
Iran has demanded direct talks without any third party mediation, to which US President Donald Trump’s administration has agreed.
It is noteworthy that after declaring Iran a sponsor of terrorism long ago, America had ended all diplomatic relations with it.
Meanwhile, the US military announced that a Shaheed-139 drone that came near the USS Abraham Lincoln aircraft carrier (grounded near Iran under Trump’s orders) was shot down by an F-35C fighter jet while the drone attempted to “aggressively” get closer.
A few hours later, in the Strait of Hormuz, an Iranian drone and two Islamic Revolutionary Guard Corps boats threatened to board a tanker and seize it. After the USS McCall responded to the scene and towed the tanker with air support, the situation deescalated.
High-level officials from Russia and Ukraine began talks in Abu Dhabi, United Arab Emirates to discuss a US-brokered peace proposal to end their long-running war.
There was no success in the first round of meetings held in UAE last month.
Experts are closely following the developments amid Russia’s demands for maximum territorial concessions from Ukraine.
Data from the American Petroleum Institute on Tuesday showed that US crude oil inventories fell by 11.1 million barrels for the week ended Jan. 30, extending a decline of 0.25 million barrels in the previous week.
For the week ending January 30, US crude oil inventories fell by 3.455 million barrels, according to the US Energy Information Administration. At the Cushing, Oklahoma delivery hub, inventories decreased by 743 thousand barrels. Commercial reserves now stand at 420.3 million barrels.
For the same period, gasoline inventories increased by 685,000 barrels, distillate inventories decreased by 5.6 million barrels, and heating oil inventories declined by 160,000 barrels.
Trump signed the budget package forwarded by the House of Representatives in a close vote of 217–214.
Last week, this bill was approved by the Senate, the upper house of Congress.
After endorsing the legislation, Trump called it “a huge victory for the American people.”
It legally secures government funding through September 2026 for most departments except the Department of Homeland Securities.
The news supported the US dollar’s gains and the US Dollar Index was last seen trading up 0.25 points (or 0.26%) at 97.68.
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