A surprise inventory decline in crude oil inventories contrasts with flat market close amid geopolitical tensions and mixed signals.
A private survey revealed a crude oil inventory draw of 3.4 million barrels, exceeding expectations of a 2.1 million barrel decline. Distillate and gasoline stocks also fell, with distillates dropping 1.3 million barrels and gasoline down 2.1 million barrels.
Markets had anticipated a smaller draw, with prior sessions reflecting volatility tied to geopolitical developments. Earlier reports of an explosion on Qeshm Island briefly lifted prices before being dismissed as unrelated to military activity. Oil benchmarks settled flat despite late-session reports of stalled US-Iran nuclear talks and potential military strikes.
Traders also digested comments from former President Trump, who confirmed canceling a planned strike on Iran but warned of possible future action. The seizure of an Iran-linked vessel added to supply concerns, though broader market reaction remained muted.