Oil prices settle higher, then reverse gains after Trump eases worries about Iran
The Guinea-flagged oil tanker MT Bandra, which is under sanctions, is partially seen alongside another vessel at El Palito terminal, near Puerto Cabello, Venezuela December 29, 2025. REUTERS/Juan Carlos Hernandez
NEW YORK, Jan 14 : Oil prices settled higher on Wednesday, then gave back most of the day's gains after U.S. President Donald Trump eased fears of disruptions to Iranian supplies when he said late in the afternoon that killings in Iran’s crackdown on civil unrest were subsiding.
Brent futures were down 92 cents or 1.41 per cent at $64.55 after settlement at 3:18 p.m. ET (2018 GMT). U.S. West Texas Intermediate crude futures slipped 96 or 1.57 per cent to $60.19.
Earlier, Brent futures settled $1.05, or 1.6 per cent, higher at $66.52 a barrel. U.S. West Texas Intermediate crude gained 87 cents, or 1.42 per cent, at $62.02 a barrel. Prices rose on fears of Iranian supply disruptions due to a potential U.S. attack on Iran and possible retaliation against U.S. regional interests.
Trump said on Wednesday afternoon he had been told that killings in Iran’s crackdown on nationwide protests were subsiding and he believed there was currently no plan for large-scale executions.
"The market now thinks that maybe there is not going to be an attack on Iran so the stock market rallied and oil prices plummeted really quickly," said Phil Flynn, senior analyst with the Price Futures Group.
Still, tensions between Tehran and Washington remained high.
Iran had warned U.S. allies in the Middle East it would strike U.S. bases on their soil if the U.S. attacked it. The U.S. was withdrawing personnel from key bases in the region as a precaution given heightened regional tensions, a U.S. official said on Wednesday.
"Protests in Iran risk tightening global oil balances through near-term supply losses, but mainly through rising geopolitical risk premium," Citi analysts said in a note.
The analysts noted, however, that the protests had not spread to the main Iranian oil-producing areas, which had limited the effect on actual supply.
Also supporting oil prices, Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday he was optimistic about the economic outlook and expected inflation to wane.
SHARP RISE IN US CRUDE STOCK CURBS PRICE GAINS
U.S. crude and gasoline inventories both rose more than expected last week, the Energy Information Administration said on Wednesday, as refining activity and imports jumped.
Crude stocks rose by 3.4 million barrels to 422.4 million barrels last week, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.7 million-barrel draw. Gasoline stocks increased by 9 million barrels in the week to 251 million barrels, compared with analysts' expectations for a 3.6 million-barrel build.
Also limiting price gains, Organization of the Petroleum Exporting Countries member Venezuela has begun reversing oil production cuts made under a U.S. embargo as crude exports were also resuming, three sources said.
Two supertankers departed Venezuelan waters on Monday with about 1.8 million barrels each of crude in what may be the first shipments of a 50 million-barrel supply deal between Venezuela and the United States to get exports moving again following the U.S. capture of Venezuelan President Nicolas Maduro.
