WTI extends gains to near $64.00 on Iran sanctions, falling US inventories

أسواق الإمارات اليومApril 23, 2025

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WTI price edged higher, supported by new US sanctions on Iran and growing signs of tightening supply.
The American Petroleum Institute (API) reported a draw of 4.6 million barrels in US crude inventories last week.
President Trump expressed optimism over ongoing US-China trade negotiations, highlighting encouraging progress in discussions.

West Texas Intermediate (WTI) Oil price extends its rally for a second straight session, trading around $63.90 per barrel during Asian hours on Wednesday. The continued rise in Oil prices comes amid fresh United States (US) sanctions on Iran and signs of tightening supply.

On Tuesday, the US imposed new sanctions targeting Seyed Asadoollah Emamjomeh, a major player in Iranian liquefied petroleum gas (LPG) and crude Oil shipping, along with his corporate network. According to the US Treasury, Emamjomeh’s group has facilitated the export of hundreds of millions of dollars worth of Iranian Oil products to international markets, per Reuters.

Adding to the bullish momentum, US crude stockpiles showed a sharp decline. The American Petroleum Institute (API) reported a drawdown of approximately 4.6 million barrels last week, according to market sources. Official data from the Energy Information Administration (EIA) is due Wednesday, with Reuters’ analysts forecasting an average decline of 800,000 barrels.

Crude Oil prices were also supported by a more upbeat market mood. On Tuesday, Treasury Secretary Scott Bessent called the current tariff standoff “unsustainable,” hinting at potential easing of trade tensions. Meanwhile, US President Donald Trump reassured markets that he has no plans to dismiss Federal Reserve Chair Jerome Powell, helping alleviate concerns about central bank independence.

President Trump also struck an optimistic tone on US-China trade talks, noting progress in negotiations. While he ruled out extreme tariff hikes—stating they wouldn’t reach 145%—he confirmed that tariffs would not be fully lifted either. The White House indicated that efforts are underway to negotiate trade deals aimed at reducing the broad tariffs introduced earlier this month.

Octalas AI