NEW YORK, Feb 20, 2026, 13:52 (EST) — Regular session
Oil eased off on Friday, though prices stayed close to the highs not seen in six months, with traders eyeing the ongoing U.S.-Iran standoff alongside a notably steep drop in U.S. crude inventories. Brent was down 19 cents at $71.47 a barrel, a 0.27% dip as of 12:36 p.m. ET. U.S. West Texas Intermediate (WTI) gave up 14 cents, or 0.21%, to trade at $66.29. Still, both contracts looked set to notch roughly 5.3% weekly gains, their first advance in three weeks, as Brent call options attracted fresh buying. “Caught in between” was how Phil Flynn at Price Futures Group put it—anticipation versus denial. Saxo Bank’s Ole Hansen described the mood as a “wait-and-see day,” after Iran’s foreign minister signaled a draft counterproposal could surface within days. Reuters
After Thursday’s surge, both contracts closed at six-month highs as traders put a geopolitical risk premium back in play. Trump ramped up pressure on Iran, warning it to strike a deal on its nuclear program within 10 days or face “bad things.” Iran, for its part, was preparing for a joint naval drill with Russia, according to the semi-official Fars news agency. The Strait of Hormuz stayed in the spotlight—roughly a fifth of global oil moves through there—while Saudi crude exports slipped to 6.988 million barrels per day, the lowest since September, JODI figures showed. “The market’s rallying on expectations that something’s going to happen,” said Andrew Lipow of Lipow Oil Associates. Reuters
U.S. commercial crude inventories slipped by 9.0 million barrels last week, landing at 419.8 million barrels, according to the Energy Information Administration. That puts stockpiles around 5% under the five-year average for this point in the year. Gasoline supplies lost 3.2 million barrels, distillates dropped another 4.6 million, and refineries operated at 91% of capacity. Over the last four weeks, total products supplied—a proxy for demand—came in at 21.2 million barrels per day, up 4.1% from a year ago.
The drawdown was enough to keep a bid under the market, as headlines carried most of the weight. In tense stretches, stock numbers can pack as much punch as geopolitics, shifting the urgency for buyers to secure barrels.
Call options allow buyers to purchase oil futures at a predetermined price, but they’re not required to follow through. A surge in call buying? That’s usually a sign traders are shelling out for insurance in case prices jump unexpectedly.
OPEC announced that eight major OPEC+ producers plan to hold off on scheduled output hikes in March, with a follow-up meeting set for March 1 to assess both compliance and where the market stands. The alliance noted that as much as 1.65 million barrels per day might come back online—partially or fully—if market dynamics allow.
The supply cushion tends to sap momentum from rallies once that initial fear subsides. Right now, near-term risk is calling the shots on pricing—not the longer-term balance picture.
A rapid easing of U.S.-Iran tensions might erase the premium almost as quickly as it appeared, particularly following this week’s steep rally. Should additional supply come online later in the year, attention would shift back toward demand and the state of the broader economy.
Attention shifts to the U.S. weekly inventory numbers due Feb. 25, with the OPEC+ gathering set for March 1 also on traders’ radar. Any fresh developments out of the Iran negotiations could jolt the oil tape before then.
