Oil swings with U.S. stockpile drop, Iran talks dominating market

Oil swung between gains and losses in a thinly traded session after bullish U.S.-stockpile data eased concerns about dropping demand amid talks that could allow Iran to expand exports.

West Texas Intermediate futures were little changed below US$87 a barrel while bouncing around within a range of almost US$3 on Wednesday. Crude initially rallied after a US government tally showed inventories dropped by 7.06 million last week while exports rose to a record as European buyers sought replacements for Russian barrels.

Meanwhile, traders are closely watching the progress of discussions that could revive the Iranian nuclear deal as well as the Chinese government’s call for economic-stimulus measures.