Global benchmark Brent crude futures fell 21 cents, or 0.2%, to $100.01 a barrel after rising 3.9% on Tuesday. The US West Texas Intermediate crude futures contract was down 10 cents, or 0.1%, at $93.64 a barrel, having jumped 3.7% the previous day.
Both contracts rose on Tuesday when in fact OPEC leader Saudi Arabia flagged the possibility of introducing cuts to balance a market described as “schizophrenic”, with paper and physical markets increasingly disconnected.
But a potential OPEC+ production cut may not be imminent and is likely to coincide with Iran’s return to oil markets should that country strike a nuclear deal with the West, nine OPEC sources told Reuters on Tuesday.
A senior US official told Reuters on Monday that Iran had dropped some of its main demands to restart a deal.
“Tuesday’s rally was scrapped because many investors knew it would take months for Iranian oil to hit the international market, even though an agreement was reached to revive Tehran’s 2015 nuclear deal, meaning that OPEC+ will not cut production so soon,” said Kazuhiko Saito, chief analyst at Fujitomi Securities.
“Still, the market does not have much room for further downside due to strong winter heating fuel demand,” he said, adding that the recent rally in the US heating oil market and the rise in natural gas prices raised expectations of stronger heating oil demand. Promoted and strict crude oil supply.
US gas prices rose above $10 for the first time in nearly 14 years as prices surged in Europe, where supplies remain tight.
Traders cited data from the American Petroleum Institute on Tuesday, underlining tight supplies, contrary to analysts’ estimates of a 900,000 barrel fall in US crude reserves for the week ended August 19 in a Reuters poll. declined by about 5.6 million barrels.
But gasoline inventories increased by about 268,000 barrels, while distillate stocks increased by about 1.1 million barrels.
Oil has soared in 2022, approaching an all-time high of $147 in March, when supply concerns grew after Russia’s invasion of Ukraine. Fears of a global slowdown, rising inflation and weak demand have weighed on prices.
Russia called its actions in Ukraine a “special operation”.