Oil gains over 3% ahead of US-Iranian talks

Oil drilling rigs

Oil prices rose at the close of volatile trading today, Feb. 4, buoyed by a drop in US crude inventories and anticipation of a new round of talks between Iran and the US over the nuclear issue.

Brent crude futures for April delivery climbed 3.16%, or $2.13, to $69.46 a barrel. US West Texas Intermediate (WTI) crude futures for March delivery also rose 3%, or $1.93, to $65.14 a barrel.

This followed official data showing a 3.5 million barrel decline in US crude oil inventories last week, indicating increased domestic consumption.

Tensions between the US and Iran remained a key support for oil prices, with US officials telling Axios that Washington had rejected Iran's request to change the venue or format of the talks scheduled for Friday.

Indicating the possibility of the talks collapsing, Trump said in an interview with NBC News that Washington would target Iranian facilities again if Tehran resumed its nuclear program.