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Oil Hovers Near Seven-month Highs Ahead of US-Iran Talks

FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
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Oil Hovers Near Seven-month Highs Ahead of US-Iran Talks

FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo
FILE PHOTO: Chevron-chartered Ionic Anax oil tanker sits anchored in Lake Maracaibo, near the Bajo Grande crude port operated by state oil company PDVSA, in Maracaibo, Venezuela, February 9, 2026. REUTERS/Marco Bello/File Photo

Oil prices edged higher on Wednesday, as investors weighed the threat of military conflict between the US and Iran that could disrupt supply and a big build in US crude inventories.

Brent futures were up 6 cents at $70.83 per barrel at 0957 GMT. WTI futures rose 4 cents to $65.67 per barrel.

Brent prices reached their highest since July 31 on Friday, while WTI hit its highest since August 4 on Monday, as the US positioned military ‌forces in ‌the Middle East to try to compel Iran to ‌negotiate ⁠an end to ⁠its nuclear and ballistic missile program.

An extended conflict could disrupt supplies from Iran, the third-biggest crude producer in the Organization of the Petroleum Exporting Countries, and other countries in the key Middle East producing region.

Supporting oil prices, US President Donald Trump briefly laid out his case for a possible attack on Iran in his State of the Union speech on Tuesday, saying he would ⁠not allow a country he described as the world's biggest ‌sponsor of terrorism to have a nuclear ‌weapon.

"This uncertainty means the market will continue to price in a large risk premium ‌and remain sensitive to any fresh developments," ING commodities strategists said on ‌Wednesday.

US envoys Steve Witkoff and Jared Kushner are due to meet an Iranian delegation for a third round of talks on Thursday in Geneva.

Iran's Foreign Minister Abbas Araqchi said on Tuesday that a deal with the US was "within reach, but ‌only if diplomacy is given priority.”

"Trump has warned that without a deal, there will be 'very bad consequences'. Whether (Iran's) concessions ⁠will meet ⁠the US's 'zero enrichment' red line remains to be seen," Tony Sycamore, IG market analyst, said in a note.

Amid the heightened tensions, Iran has accelerated talks to purchase Chinese anti-ship cruise missiles, according to Reuters sources, which could target the US naval forces that have assembled near the Iranian coast.

While geopolitical tensions have supported prices, the market is also contending with concerns of large inventory gains as global supply exceeds demand.

According to market sources, the American Petroleum Institute late on Tuesday reported a massive increase in US oil stockpiles of 11.43 million barrels in the week ended February 20.

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Business

Iraq’s West Qurna 2 Oilfield Poised for Output Surge with Chevron, Minister Says 

This handout picture made available by the Iraqi prime minister's office shows Iraq's Prime Minister Mohammed Shia al-Sudani (top C), Oil Minister Hayan Abdel-Ghani (top R), US Special Envoy to Iraq Tom Barrack (top L), Chevron's Director of Business Development Joe Koch (bottom L), Iraq's North Oil Company Director Amer Khalil (bottom C), and the Director of the Dhi Qar Oil Company Said Zghair Shallagha (bottom R) attending the signing of agreements between Chevron Corporation and the Dhi Qar and North Oil Companies at the government palace in Baghdad on February 23, 2026. (Handout / Iraqi Prime Minister’s Press Office / AFP)
This handout picture made available by the Iraqi prime minister's office shows Iraq's Prime Minister Mohammed Shia al-Sudani (top C), Oil Minister Hayan Abdel-Ghani (top R), US Special Envoy to Iraq Tom Barrack (top L), Chevron's Director of Business Development Joe Koch (bottom L), Iraq's North Oil Company Director Amer Khalil (bottom C), and the Director of the Dhi Qar Oil Company Said Zghair Shallagha (bottom R) attending the signing of agreements between Chevron Corporation and the Dhi Qar and North Oil Companies at the government palace in Baghdad on February 23, 2026. (Handout / Iraqi Prime Minister’s Press Office / AFP)
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Iraq’s West Qurna 2 Oilfield Poised for Output Surge with Chevron, Minister Says 

This handout picture made available by the Iraqi prime minister's office shows Iraq's Prime Minister Mohammed Shia al-Sudani (top C), Oil Minister Hayan Abdel-Ghani (top R), US Special Envoy to Iraq Tom Barrack (top L), Chevron's Director of Business Development Joe Koch (bottom L), Iraq's North Oil Company Director Amer Khalil (bottom C), and the Director of the Dhi Qar Oil Company Said Zghair Shallagha (bottom R) attending the signing of agreements between Chevron Corporation and the Dhi Qar and North Oil Companies at the government palace in Baghdad on February 23, 2026. (Handout / Iraqi Prime Minister’s Press Office / AFP)
This handout picture made available by the Iraqi prime minister's office shows Iraq's Prime Minister Mohammed Shia al-Sudani (top C), Oil Minister Hayan Abdel-Ghani (top R), US Special Envoy to Iraq Tom Barrack (top L), Chevron's Director of Business Development Joe Koch (bottom L), Iraq's North Oil Company Director Amer Khalil (bottom C), and the Director of the Dhi Qar Oil Company Said Zghair Shallagha (bottom R) attending the signing of agreements between Chevron Corporation and the Dhi Qar and North Oil Companies at the government palace in Baghdad on February 23, 2026. (Handout / Iraqi Prime Minister’s Press Office / AFP)

Iraq could nearly double its output from West Qurna 2 oilfield to 800,000 barrels per day as Chevron enters exclusive talks to take over operations from Russia's Lukoil, Iraq's oil minister said on Wednesday.

Iraq has been seeking to increase its oil and gas production, with oil majors vying to expand their operations in Iraq, after they had previously scaled back due to years of political instability.

Oil Minister Hayan Abdel-Ghani told ‌Kurdish TV ‌channel Rudaw that output could rise to between 750,000 ‌and ⁠800,000 bpd after Chevron ⁠takes over the operations in the field. The US firm has secured one-year exclusive rights to negotiate taking over the project.

The deal would expand Chevron's footprint by giving it control of one of the world's largest oilfields, which accounts for nearly 10% of Iraq's production and about 0.5% of global supply.

Chevron had already agreed to develop several fields in the country as part of ⁠an international expansion.

The Chevron deal is the latest in ‌a string of agreements with global oil ‌majors such as Exxon, BP, and TotalEnergies, in which Baghdad offers more generous terms in ‌a bid to beef up production.

Iraq, the second-largest producer within the ‌OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies including Russia, plans to raise oil production capacity to more than 6 million barrels per day (bpd) by 2029.

It has frequently produced in excess of its agreed target with OPEC+.

The ‌deal could also bolster relations between Baghdad and Washington, which threatened to curb Iraq's access to oil revenues if ⁠Iranian-backed groups ⁠were included in the upcoming government.

The agreement with Chevron, however, aligns Iraq more closely with Western energy interests as a US major replaces a sanctioned Russian firm, Lukoil, within broader efforts to isolate Moscow over its war in Ukraine.

Lukoil declared force majeure in November at West Qurna 2 after it was hit with sanctions alongside Rosneft as part of US President Donald Trump's push to end the war in Ukraine.

Iraq stripped Lukoil of operatorship of the field in January and temporarily transferred the field to the state-run Basra Oil Company (BOC).

In January, Iraq's cabinet said an "amicable settlement" with Lukoil for the transfer was approved. A final deal requires approval from Iraq's cabinet and the US Office of Foreign Assets Control, Chevron has said.

Business

Germany Wants Deeper, Fairer Economic Ties with China, Merz Tells Li 

Chinese Premier Li Qiang welcomes German Chancellor Friedrich Merz with military honors in the Great Hall of the People in in Beijing, China, February 25, 2026. (Reuters)
Chinese Premier Li Qiang welcomes German Chancellor Friedrich Merz with military honors in the Great Hall of the People in in Beijing, China, February 25, 2026. (Reuters)
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Germany Wants Deeper, Fairer Economic Ties with China, Merz Tells Li 

Chinese Premier Li Qiang welcomes German Chancellor Friedrich Merz with military honors in the Great Hall of the People in in Beijing, China, February 25, 2026. (Reuters)
Chinese Premier Li Qiang welcomes German Chancellor Friedrich Merz with military honors in the Great Hall of the People in in Beijing, China, February 25, 2026. (Reuters)

China and Germany want to deepen cooperation, German Chancellor Friedrich Merz and Chinese Premier Li Qiang said in Beijing on Wednesday, as Merz began a visit aimed at resetting ties amid a widening trade imbalance.

Merz told Li that Germany attached great importance on maintaining and deepening its extensive economic exchanges with China, its largest trading partner last year, while emphasizing the need for fair cooperation and open communication.

"We have very specific concerns regarding our cooperation, which we want to improve and make fair," said Merz, who faces a tough balancing act of redefining an economic relationship that is increasingly unfavorable to German interests.

Li called on both sides to work together to safeguard multilateralism and free trade, in a comment seen as a reference to US President Donald Trump's trade war, which has upended the global ‌trading system.

"China and ‌Germany, as two of the world's largest economies and major countries with important influence, ‌should ⁠strengthen our confidence in ⁠cooperation, jointly safeguard multilateralism and free trade, and strive to build a more just and fair global governance system," Li said.

NO CONSEQUENTIAL DEALS SIGNED

Despite their calls for deeper engagement, the agreements Merz and Li formalized after their meeting were narrowly targeted and in industries peripheral to both economies.

The five documents signed covered continued efforts in climate change and green transition, cooperation in animal disease prevention and a poultry products protocol, as well as sports collaboration agreements for football and table tennis.

That paled in comparison with Canada and Britain, which respectively signed eight and 12 documents with China last month aimed at boosting trade ⁠and investments.

Still, the business-focused latter half of Merz's visit could see more deals ‌secured.

He is accompanied by a delegation of 30 firms including top carmakers ‌such as Volkswagen and BMW which are acutely feeling the strain of Chinese competition - contributing to the growing trade imbalance that has ‌sparked concern in Berlin and led to calls for protectionist policies.

CHINA-EU TIES IN FOCUS

China is seeking to pitch ‌itself as a reliable economic partner, in contrast to the United States, as Europe struggles to address vulnerabilities in its supply chains and worries about growing dependence on China.

Europe is seeing an acceleration of concerning trends in China, Europe's Trade Commissioner Maroš Šefčovič told the European Parliament on Tuesday, citing China's growing dominance in key manufacturing sectors, a rising imbalance in trade, and falling market share ‌of EU companies in China.

Germany's manufacturing-heavy economy has been particularly hard hit by competition from China's manufacturers, Rhodium Group's China analyst Noah Barkin said in a recent ⁠research note.

Merz, on his first visit ⁠to China, becomes the latest European leader seeking to reset ties with China after Britain's Keir Starmer and Canada's Mark Carney earlier this year, while Beijing touts the benefits of engaging with its massive consumer market and advanced manufacturing base.

Engagement between Europe's largest economy and China could set the stage for EU-China relations this year.

China's market, once coveted by foreign businesses for its wide consumer base and rising spending power, has changed in recent years with a slowing economy capping consumer demand and manufacturing overcapacity increasingly pushing domestic firms to look for opportunities abroad.

CHINA STILL BOASTS MEGA MARKET

In editorials ahead of the visit, Chinese state media emphasized the potential for EU-China cooperation to become a stabilizing force while US tariff policies upend global trade.

Xinhua cited a German chamber of commerce survey finding that innovation gains in China are feeding back into German headquarters.

State-backed newspaper the Global Times said concerns about competition with China would be outweighed by the lure of China's massive market.

"Rhetoric such as 'systemic rival' and 'de-risking' has at times complicated Germany's China policy," it said in an early Wednesday editorial.

"Yet the enthusiasm and actions of the German business community speak louder than political slogans."

Business

Gold Gains on Softer Dollar, Safe Haven Bid amid US Tariff Uncertainty

A woman passes by a gold shop in Hong Kong (AFP)
A woman passes by a gold shop in Hong Kong (AFP)
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Gold Gains on Softer Dollar, Safe Haven Bid amid US Tariff Uncertainty

A woman passes by a gold shop in Hong Kong (AFP)
A woman passes by a gold shop in Hong Kong (AFP)

Gold prices rose on Wednesday, lifted by a softer dollar and heightened safe-haven demand amid uncertainty over US tariffs and rising friction between Washington and Tehran.

Spot gold rose 0.8% to $5,190.99 per ounce, as of 0841 GMT. US gold futures for April delivery were up 0.7% at $5,210.40.

The US dollar index shed 0.1%, making greenback-priced bullion cheaper for other currency holders.

"Spot ‌gold is being ‌supported above the $5,000 level by the softer ‌US ⁠dollar, a muddied ⁠outlook on US trade policy, and persistent geopolitical tensions," said Han Tan, chief market analyst at Bybit.

"As long as these fundamental drivers remain intact, bullion bulls will be eager for a return towards record highs."

Gold, a traditional safe-haven, does well during times of geopolitical and economic uncertainty.

US President Donald Trump said in his ⁠State of the Union speech that "almost all" countries ‌and corporations want to stick to tariff ‌and investment agreements previously made with Washington.

The country began collecting a ‌temporary 10% global import tariff on Tuesday, but Washington was working ‌to raise it to 15%, Reuters quoted a White House official as saying.

Meanwhile, US envoys Steve Witkoff and Jared Kushner are slated to meet with an Iranian delegation for a third round of nuclear talks on Thursday in ‌Geneva.

Iran is close to a deal with China to purchase anti-ship cruise missiles, according to ⁠Reuters sources, ⁠which could target the US naval forces that have assembled near the Iranian coast.

Elsewhere, spot silver climbed 4.2% to $90.96 per ounce, a three-week high.

"The path ahead (for silver) will be shaped by a more complex mix of monetary policy, inflation expectations, and US dollar dynamics," said Rania Gule, Senior Market Analyst at XS.com.

JP Morgan on Wednesday said demand from central banks and investors this year could push gold prices to $6,300 an ounce by end-2026. It also raised its long-term price forecast for gold to $4,500 per ounce.

Spot platinum rose 5.8% to $2,293.69 per ounce, its highest point since February 4, while palladium added 2.8% to a three-week high of $1,817.22.