Crude Oil Prices Edge Lower on Feb 18 as Diplomatic Progress Eases Supply Concerns

Crude oil prices slipped slightly in early Wednesday trading as diplomatic progress between the United States and Iran reduced concerns over potential supply disruptions from the Middle East. Even small developments in geopolitical relations can influence crude markets, as traders constantly assess risks to global supply flows.

Market Movement and Price Trends

Brent crude futures declined marginally, while U.S. West Texas Intermediate (WTI) crude also registered slight losses, with both benchmarks hovering near two-week lows. Though the price movements were modest, they reflect cautious optimism among traders that tensions impacting oil supply routes may ease if diplomatic progress continues. 

As of 7:50 AM, market data showed mild fluctuations, with WTI Crude trading at 62.38, up 0.05 or 0.08%, Brent Crude at 67.50, gaining 0.08 or 0.12%, while Murban Crude traded at 67.89, slipping 0.04 or 0.06%, indicating cautious trading as markets balance diplomatic optimism with supply-demand uncertainties.

Diplomatic Developments Impacting Oil

Negotiators from both nations reportedly reached an understanding on guiding principles aimed at addressing their longstanding nuclear dispute. However, Abbas Araqchi clarified that an agreement is not imminent, suggesting negotiations remain complex. 

Any eventual deal could allow increased Iranian oil flows into global markets, potentially adding supply and putting downward pressure on prices.

Focus Shifts to Inventory Data

Market participants are also watching upcoming inventory reports from the American Petroleum Institute and the Energy Information Administration, the statistical arm of the U.S. Department of Energy. These reports offer insights into U.S. crude stock levels, helping traders gauge demand strength and short-term supply balance.

Also Read: Best PSU Stocks in India in February 2026!

Conclusion

Crude oil markets remain sensitive to both geopolitical developments and supply-demand indicators. While diplomatic progress offers relief from supply concerns, upcoming inventory data will play a key role in shaping price direction in the near term. Traders are likely to remain cautious until clearer signals emerge from both diplomacy and demand trends.

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