Oil prices traded in a narrow range on Tuesday as geopolitical tensions between the United States and Iran continued to underpin the market, while investors awaited key US inventory data, Reuters reported.
International benchmark Brent crude edged up by around 20 cents to trade near $69 a barrel, while US West Texas Intermediate (WTI) crude gained a similar amount to hover above $64, according to market data cited by Reuters.
Traders remained cautious as Washington and Tehran prepare for another round of indirect negotiations following talks facilitated by Oman last week. Iranian officials said the discussions helped gauge US intent and provided sufficient common ground to keep diplomatic efforts alive.
However, sentiment was tempered by signs of rising military pressure. Reuters noted that US officials have indicated a possible increase in American military presence in the Middle East if diplomacy fails, including the potential deployment of an additional aircraft carrier. Analysts said such developments have kept a geopolitical risk premium in oil markets.
Attention has also turned to US supply data. Market participants are awaiting the weekly report from the US Energy Information Administration, after industry estimates suggested a larger-than-expected rise in crude inventories last week. In contrast, gasoline and distillate fuel stocks were forecast to have declined.
Reuters said oil markets are balancing concerns over geopolitical escalation with broader supply-demand signals, including upcoming economic indicators that could influence global energy consumption outlooks.