US inventory numbers from the American Petroleum Institute (API) were bearish, with US crude oil inventories increasing by 11.4 million barrels over the week.
Crude oil futures traded higher on Wednesday morning as markets feared supply risks if scheduled talks between the US and Iran fail on Thursday.
At 9.57 am on Wednesday, May Brent oil futures were at $71.08, up by 0.71 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $66.08, up by 0.69 per cent. March crude oil futures were trading at ₹6,021 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹6,008, up by 0.22 per cent, and April futures were trading at ₹6,031 against the previous close of ₹6,020, up by 0.18 per cent.
In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said oil prices weakened on Tuesday, with ICE Brent settling a little more than 1 per cent lower amid hopes that the US and Iran will reach a diplomatic solution. There were reports that Iran is ready to strike a deal as soon as possible. This noise comes ahead of another round of planned talks between the US and Iran on Thursday.
“At the same time, the US continues to build up military assets in the region. So, without a deal, the probability of military action is high and growing,” they said, adding, US President Donald Trump’s 10-to-15-day deadline for Iran works out to a date sometime in very early March. This uncertainty means the market will continue to price in a large risk premium and remain sensitive to any fresh developments.
US inventory numbers from the American Petroleum Institute (API) were bearish, with US crude oil inventories increasing by 11.4 million barrels over the week. This is well above the 1.9 million barrels the market was expecting. Meanwhile, gasoline and distillate stocks fell by 1.5 million barrels and 2.8 million barrels, respectively. The more widely followed US Energy Information Administration report will be released later on Wednesday. A similar crude oil stock build to the API would be the largest build since February 2024, they said.
The next OPEC+ meeting is scheduled for March 1, and given the broader market strength, the group is likely to resume supply increases from April. This is despite the oil balance sheet suggesting that the market doesn’t need additional supply, they added.
March natural gas futures were trading at ₹259.60 on MCX during the initial hour of trading on Wednesday against the previous close of ₹262.10, down by 0.95 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), April dhaniya contracts were trading at ₹11,638 in the initial hour of trading on Wednesday against the previous close of ₹11,330, up by 2.72 per cent.
April turmeric (farmer polished) futures were trading at ₹16,186 on NCDEX in the initial hour of trading on Wednesday against the previous close of ₹16,092, down by 0.58 per cent.
Published on February 25, 2026
