Oil tries to recover from 2-week low as tensions over Iran ease

Oil prices rose on Wednesday in a recovery attempt from a two-week low recorded earlier in the day, supported by preliminary data showing a decline in US crude inventories for the fifth week in a row, while those attempts are curbed by the easing of tensions over Iran after recent statements by US President Donald Trump..

By 09:55 GMT, US crude rose to $57.95 per barrel from the opening of $57.46, recording a high of $57.99 and a low of $57.46.

Brent rose to $64.85 per barrel from the opening of $64.40, with a high of $64.96 and a low of $64.40.

US crude fell Tuesday by 3%, its third consecutive daily loss, hitting a two-week low of $57.09 per barrel, and Brent lost 2.7%, the biggest daily loss in two weeks.

In preliminary data, the American Petroleum Institute announced yesterday that the country's trade inventories fell by 1.4 million barrels in the week ending in July 12, the fifth consecutive weekly decline, below expectations of a decline of 2.7 million barrels.

According to the data, total US trade inventories fell to 459.6 million barrels, the lowest level since the week ending in April 19, in a positive sign of improved domestic demand in the world's top oil consumer.

Traders are looking for official data on commercial stocks and production levels later today, in the weekly report of the US Energy Agency, with expectations of a 3.6 million barrel drop in inventories.

US President Donald Trump said on Tuesday that significant progress had been made with Iran and that he is not seeking to change the regime in the Islamic Republic.

These statements have reduced tensions about Iran, which has been one of the reasons why oil prices have soared in the recent period and have now shifted the focus to the underlying factors that have affected supply and demand levels.