Oil prices were little changed in Asian trade on Wednesday after tumbling nearly 2% in the previous session, as signs of progress in U.S.-Iran nuclear negotiations eased fears of supply disruptions and dampened risk premiums.

As of 21:18 ET (01:18 GMT), Brent Oil Futures expiring in April edged up 0.1% to $67.51 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.1% to $62.40 per barrel.

Brent contract slipped nearly 2% on Tuesday, while WTI prices fell 1%.

US-Iran nuclear talks progress
Washington and Tehran were reported to have reached an understanding on key “guiding principles” during talks on Tuesday, raising expectations of a potential deal that could eventually bring more Iranian crude to global markets.

The understanding does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.

The talks are closely watched by energy markets because Iran is a major oil producer and sits along the strategically vital Strait of Hormuz, a narrow waterway through which roughly a fifth of global oil consumption passes each day.

Trading activity in Asia was subdued, with several regional markets closed for the Lunar New Year holiday, contributing to thin volumes and muted price moves.

Traders await API weekly figures; Fed outlook in focus
Investors also adopted a cautious stance ahead of weekly U.S. inventory indicators, with the American Petroleum Institute’s estimates due later on Wednesday and official data from the Energy Information Administration scheduled for Thursday, both closely watched for signs of supply trends.

Meanwhile, broader macroeconomic cues also remained in focus.

Traders are awaiting minutes from the Federal Reserve’s January policy meeting later on Wednesday, along with Friday’s U.S. personal consumption expenditures (PCE) inflation report, for clues on the interest-rate outlook and demand prospects for fuel.
Source: Investing.com