Crude futures traded lower on Wednesday, but US benchmark prices remained below their all-time highs.
The resumption of indirect talks between the US and Iran may have “contributed to the recent weakening of prices”, but the countries remain “far from any agreement that could lead to a new supply increase”, said Michael Hewson, chief market analyst at CMC Markets UK.
“This could ‘limit any fall’ in oil prices, along with cuts in US crude stockpiles,” he said.
The world benchmark, British Brent crude lost 34 cents or 0.4%, closing at 90.44 a barrel.
West Texas Intermediate crude for March delivery was up 30 cents, or 0.3 percent, at $ 89.66 a barrel on the New York Mercantile Exchange, hitting $ 90.58. Prices fell 2.2% on Tuesday.
The market climate was also hit by the Energy Information Administration’s latest monthly report, which raised its outlook for US crude production by an average of 11.97 million bpd this year.
In addition, industry concerns about geopolitical risks appeared to be easing on Wednesday, according to several analysts.
Source: Capital
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