CRUDE WRAP: WTI (U6) SETTLES USD 0.55 LOWER AT USD 75.22/BBL; BRENT (V6) SETTLES USD 0.09 HIGHER AT USD 79.45/BBL

Crude prices pare initial upside as reports point towards an Iran-Oman deal being in its final stages. The WSJ, citing sources, noted that if a deal is announced, the US and Iran would return to the negotiating table to discuss issues including Iran's nuclear program and financial relief. Oman and Qatar are pushing to build in incentives like oil sanctions waivers into the deal. Meanwhile, CNN reported, citing a Gulf official, that there is a “50:50” chance the US and Iran could reach a deal by Friday. Negative developments include the Houthis announcing they attacked Saudi oil tankers in the Red Sea and Gulf of Aden, the former in response to an attempted navigation via the northern Red Sea to avoid the Bab Al-Mandab strait; "operations will continue and escalate in targeting Saudi oil tankers".

Separately, CPC oil loadings were reportedly suspended, after brief resumptions, because of safety concerns and tanker shortage after drone attacks.

The EIA weekly inventory report saw a commercial crude stocks build 2.479mln (exp. -1.85mln), Gasoline Stocks draw 1.643mln (exp. -1.21mln), Distillate Stocks draw 3.473mln (exp. 0.55mln) and Cushing crude stocks build 2.346mln (prev. -0.771mln); SPR drew 2.9mln barrels.