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Oil Near 7-Month Highs as Massive U.S. Stock Build Collides With U.S.–Iran Geneva Talks

Traders confront a standoff pitting conflict risk against a surprise 16 million‑barrel inventory surge.

Overview

  • The EIA reported U.S. crude inventories jumped by roughly 16 million barrels for the week ended Feb. 20, a far larger build than forecast and a near‑term headwind for prices.
  • Brent traded around $71 and WTI near $66 as markets maintained a geopolitical premium ahead of a third round of U.S.–Iran talks scheduled for Thursday in Geneva.
  • President Trump warned of “very bad” consequences without a deal as U.S. forces massed in the region, while Iran’s Abbas Araqchi said a deal is within reach if diplomacy is prioritized.
  • OPEC+ will consider a 137,000 bpd output increase for April at its March 1 meeting, and Reuters reporting says Saudi Arabia has raised shipments to prepare for potential disruption.
  • API data also pointed to a large 11.4 million‑barrel crude build, underscoring mixed fundamentals as some analysts outline scenarios where escalation could drive prices toward $90–$100.