Oil Prices Diverge Amid Iran Developments and Russian Escalation Fears
Crude oil prices dropped for a third consecutive day on Wednesday as markets weighed potentially positive developments in the Middle East against new fears of Russian escalation in Ukraine and dwindling US reserves.
The international oil benchmark Brent fell to around $85 per barrel, while US crude oil reached a low of $79 per barrel early in the day for the first time since August 13.
However, prices made an unexpected U-turn midday on reports that Russian President Vladimir Putin was planning to escalate his war with Ukraine, driving them slightly higher before ending the day lower.
The US Energy Information Administration's announcement that oil stockpiles had risen by fewer barrels than analysts were expecting also contributed to the price fluctuations.