(Source: Investing.com) Oil was mixed on Thursday morning in Asia, with an unexpected drop in U.S. crude inventories giving the black liquid a boost during the previous session. Investors are now focusing on the outcome of U.S.-Iran nuclear talks, with a successful outcome potentially adding supply to a tight market.
Brent oil futures inched down 0.01% to $28.09 by 11:27 PM ET (4:27 AM GMT), while WTI futures inched up 0.03% to $24.95.
Wednesday’s U.S. crude oil supply data from the U.S. Energy Information Administration showed a draw of 4.756 million barrels. Forecasts prepared by Investing.com had predicted a 369,000-barrel build, while a 1.046-million-barrel draw was recorded during the previous week.
Crude oil supply data from the American Petroleum Institute released the day before showed a draw of 2.025 million barrels.
The surprise crude draw reinforces how tight the oil market remains, OANDA analyst Edward Moya said in a note.
"Crude prices have too many catalysts that support a move to $100 oil in the near future," the note added, pointing to geopolitical tensions in Eastern Europe over Ukraine and the Middle East, as well as improving fuel demand globally as travel slowly recovers towards pre-COVID-19 levels in many parts of the world.
Investors also continue to monitor progress in reviving the 2015 Iran nuclear deal after discussions resumed earlier in the week. Should the deal be revived, the U.S. could remove sanctions on Iranian oil, easing tightness in the global supply.
ON WEDNESDAY, the U.S. pressured Iran to revive the 2015 Iran nuclear agreement quickly, noting that it will be impossible to return to the accord if a deal is not struck within weeks.
"The core uncertainty remains whether Iran is willing to sign on the dotted line," Eurasia analyst Henry Rome told Reuters, adding that the consultancy was holding onto a 40% call on a return to the agreement.
Meanwhile, during a phone call on Wednesday, U.S. President Joe Biden and Saudi Arabia’s King Salman discussed energy supplies and Middle Eastern geopolitical tensions, including those in Iran and Yemen.
The Saudi Arabian king also maintained balance and stability in the oil markets. According to state news agency SPA, he emphasized the need to maintain the Organization of the Petroleum Exporting Countries and allies (OPEC+) supply agreement.
In Eastern Europe, U.S. Vice President Kamala Harris will meet allies and partners in Munich during the following, in a bid to deter a Russian attack on Ukraine.
