Emril Jamil, senior oil analyst at LSEG, said stalled talks between the U.S. and Iran, as well as warnings from the IEA about low global oil inventories, are reinforcing the risk premium in benchmark prices.
Oil prices jumped more than 2% on Wednesday, continuing an uptrend that began in the previous session. The growth was driven by renewed fighting in the Middle East and little progress in talks between Tehran and Washington.
Brent crude futures were up $2.3, or 2.4%, at $98.30 a barrel by 08:41 GMT. U.S. West Texas Intermediate (WTI) crude oil rose by $2.34, or 2.5%, rising to $96.10 per barrel. Earlier in the day, Brent and WTI prices hit their highest levels since May 27 and May 22, respectively.
According to data from the American Petroleum Institute released on Tuesday, U.S. crude inventories fell for the seventh consecutive week. They fell by 6.8 million barrels in the week ended May 29, sources said.
