Overview

• Oil prices saw initial gains of over 1% on Wednesday, driven by concerns over potential Israeli strikes on Iranian nuclear facilities and the risk of regional supply disruptions.
• U.S. intelligence reports indicate Israel may be preparing for a strike, though no final decision has been confirmed, adding uncertainty to global markets.
• U.S. crude and fuel inventories unexpectedly rose for the fourth consecutive week, reflecting weaker demand and tempering price increases.
• OPEC+ production increases for May and June, coupled with a 2% production rise in Kazakhstan, are injecting additional supply into the market.
• Markets are closely watching the upcoming May 23 nuclear talks between the U.S. and Iran in Rome, which could influence sanctions and Iranian oil exports.