Oil prices have steadied at elevated levels, while concerns about a fresh geopolitical escalation have somewhat eased.
Brent crude rose above $95 a barrel, after gaining more than 8% in three sessions, while West Texas Intermediate (WTI) traded around $91, against a backdrop of a still substantial geopolitical risk premium. Note that WTI futures slipped by 24 cents, to $90.77 a barrel.
The continued passage of shipments through the Strait of Hormuz helps to limit fears of a potential supply shortage. On Tuesday, the U.S. Navy escorted 40 vessels carrying about 18 million barrels of oil, according to officials.
The possibility of an easing remains, however, a factor likely to weigh on prices. Some traders believe that a resumption of peace talks could lead to a rapid decline in oil prices.
Conversely, any widening of the conflict could rekindle tensions on the market and trigger another upward phase.
In the United States, crude oil inventories declined by 4.5 million barrels last week, marking their first drop since the end of July.
This decline provides additional support to prices, despite ongoing energy flows from the Gulf.
Separately, U.S. Energy Secretary Chris Wright said, after arriving in Venezuela, that the deals to be signed in Caracas by American and foreign oil companies should allow crude oil production in the country to more than double over the coming years.
