Private survey inventory shows a huge headline crude oil build, much larger than expected

Oil markets swung in both directions on Tuesday but ultimately closed lower as signs of improving US-Iran relations weighed on prices. WTI and Brent futures were volatile overnight, briefly edging higher during the European session amid limited oil-specific headlines. Sentiment shifted sharply, however, after Iran’s Deputy Foreign Minister stated that Tehran is prepared to take whatever steps are necessary to secure a deal with Washington, while warning that a strike on Iran would be a serious gamble. The remarks pressured crude to intraday lows, with prices continuing to drift lower into the close.

Earlier support had come from comments at the White House suggesting President Trump prioritises diplomacy with Iran, though force remains an option if required. On the supply side, Russia’s Transneft reportedly reduced crude intake by 250,000 barrels per day following an attack on a key pumping station. Meanwhile, Venezuela is said to be preparing larger export cargoes from March, including expanded shipments to India.