Oil Holds Above $92 as Geopolitical Risks and Mixed EIA Data Keep Energy Markets on Edge Crude Oil Stabilizes Following Rebound Crude oil prices traded around $92 per barrel on Thursday, holding onto gains from the previous session as investors continued to assess growing geopolitical uncertainty in the Middle East and the latest US inventory data. The market remains highly sensitive to developments involving Iran after President Masoud Pezeshkian delivered a defiant speech at the United Nations General Assembly. Pezeshkian stated that Iran would not yield to external pressure and would continue pursuing nuclear technology for economic development. More importantly for energy markets, he warned that Tehran would not guarantee freedom of navigation through the Strait of Hormuz while US sanctions and restrictions remain in place. The Strait of Hormuz remains one of the world's most critical energy chokepoints, handling a significant share of global crude oil shipments. Any threat to maritime traffic through the region continues to support a geopolitical risk premium in oil prices. Additional support came from comments by US Energy Secretary Chris Wright, who revealed that the Trump administration is working with refiners on a voluntary reduction in diesel exports rather than implementing a formal export ban. The proposal highlights growing concerns about domestic fuel supplies ahead of the winter season. Meanwhile, Saudi Arabia is moving to restore exports through its strategic East-West pipeline, offering an alternative route that bypasses the Strait of Hormuz. Market participants are also monitoring diplomatic efforts after Ukrainian President Volodymyr Zelenskyy confirmed discussions with President Donald Trump regarding a potential energy ceasefire. EIA Report Shows Rising Crude Inventories but Strong Fuel Demand The latest Energy Information Administration (EIA) report presented a mixed picture for the US energy market. US crude oil inventories increased by 2.969 million barrels, significantly above expectations for a drawdown of approximately 600,000 barrels. The surprise build suggests that supply conditions remain relatively comfortable despite ongoing geopolitical concerns. A major contributor to the inventory increase was a sharp rise in storage at the key Cushing, Oklahoma delivery hub, where stocks climbed by 2.266 million barrels during the week. Crude oil imports also increased by 369,000 barrels per day, further contributing to the inventory build. However, the bearish impact of higher crude inventories was partially offset by stronger demand indicators in refined products. Gasoline inventories declined by 1.686 million barrels, compared with expectations for a modest increase, signaling healthy fuel consumption. Distillate inventories, which include diesel and heating oil, also fell by 428,000 barrels, broadly in line with expectations. The report further showed declines in both gasoline and distillate production, while refinery crude runs fell by 519,000 barrels per day, indicating that refiners processed less crude during the reporting period. Energy Sector Faces Mixed Fundamental Signals The latest inventory figures highlight the growing divergence between crude supply and refined product demand. On one hand, rising crude inventories and increasing imports suggest that physical supply remains available despite geopolitical disruptions. On the other hand, falling gasoline and distillate inventories point to resilient end-user demand and continued consumption across the US economy. This combination creates a complex backdrop for energy markets. While inventory builds would normally pressure oil prices lower, geopolitical risks involving Iran and the Strait of Hormuz continue to provide significant support. At the same time, Saudi Arabia's efforts to restore export capacity through the East-West pipeline may help alleviate some concerns regarding supply disruptions, limiting the upside potential driven purely by geopolitical developments. Market Outlook Energy traders are likely to remain focused on geopolitical headlines in the coming days, particularly any developments surrounding US-Iran negotiations, maritime security in the Strait of Hormuz, and diplomatic discussions involving major oil-producing nations. The latest EIA report suggests that US crude supplies are rebuilding, but continued draws in gasoline and distillate inventories indicate that fuel demand remains relatively healthy. For now, oil prices appear caught between two competing forces: rising inventories that point to comfortable supply conditions and geopolitical uncertainty that continues to support a substantial risk premium. As a result, volatility is likely to remain elevated, with traders closely monitoring both inventory trends and geopolitical developments for the next major directional catalyst.