Oil prices dipped slightly on Wednesday as diplomatic talks between the US and Iran show potential for de-escalation.

Oil prices dipped slightly on Wednesday as diplomatic talks between the US and Iran show potential for de-escalation. Brent futures dropped 0.04% to $67.39, while WTI crude lost 0.08% to $62.28. Iranian Foreign Minister Abbas Araqchi noted progress on "guiding principles" in nuclear dispute negotiations, though a comprehensive deal remains uncertain. Market analysts remain cautious about sustained geopolitical tension reduction. Political consultancy Eurasia Group estimates a 65% probability of potential US strikes against Iran by April's end. Additional market pressure came from reports of increasing output at Kazakhstan's Tengiz oil field. Upcoming weekly petroleum inventory reports from the American Petroleum Institute and Energy Information Administration will provide further market insights. Analysts anticipate US crude stockpiles may have risen by approximately 2.