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US Oil Update: Brent Gains 1% Ahead of Crude Inventory Data

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Crude oil futures gained 1% or more on Wednesday as geopolitical friction in the Middle East intensified while traders awaited crude inventory data from the US Energy Information Administration.

Front-month West Texas Intermediate crude futures rose 1.4% to $89.43 per barrel, while Brent futures gained 1% to $92.44/bbl.

ING analysts said that "oil prices havepartially recovered in early morning trading amid re-escalation between the US and Iran, casting doubts on whether any peace deal might be imminent."

On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories dropped by 9.12 million barrels in the week ended June 5.

The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

Meanwhile, the EIA released its June Short-Term Energy Outlook, trimming its 2026 global oil demand forecast by 1.1 million barrels per day relative to 2025, citing high fuel retail prices and government conservation mandates.

The agency expects that restricted shipping flows through the Strait of Hormuz will begin incrementally resuming in the third quarter of 2026.

However, the EIA warned that restoration of pre-conflict traffic volumes will take several months, projecting that a complete logistics recovery may drag into early 2027 while some regional production outages persist indefinitely.

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US Oil Update: Crude Settles Lower as Market Weighs Conflicting Middle East Signals

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