A 2.3 million barrel crude inventory decline fell short of forecasts as geopolitical risks in the Middle East lifted oil prices.
Crude oil prices climbed on Tuesday as U.S.-Iran tensions persisted, overshadowing a smaller-than-expected inventory draw reported in a private survey. The American Petroleum Institute’s data showed a 2.3 million barrel decline in crude stocks, below the anticipated 2.5 million barrel draw, while distillates and gasoline inventories also fell less than projected.
Market focus shifted to geopolitical risks, including Iran’s threat to enrich uranium to 90% and undisclosed Saudi retaliatory strikes in late March. Tehran’s demands for sanctions relief and sovereignty over the Strait of Hormuz added to supply concerns ahead of President Trump’s visit to China.
Prices received a late-session boost from reports of Saudi attacks, though the API data tempered some bullish sentiment. The precarious ceasefire and stalled nuclear talks kept traders cautious amid elevated Middle East risks.