SULAIMANI (ESTA) — Oil prices edged lower on Thursday, after rallying on an unexpected drop in U.S. crude inventories in the previous session, as investors await the outcome of U.S.-Iran nuclear talks.
Brent crude futures dropped 27 cents to $91.28 a barrel at 0617 GMT, while U.S. West Texas Intermediate (WTI) crude was at $89.49 per barrel, down 17 cents.
U.S. crude inventories fell 4.8 million barrels in the week to February 4, dropping to 410.4 million barrels, according to the Energy Information Administration.
EIA data showed U.S. product supplied peaked at 21.9 million barrels per day (bpd) over the past four weeks due to strong economic activity nationwide, Reuters reported.
“We are seeing some consolidation after a fairly constructive EIA report,” Reuters quoted Warren Patterson, ING’s head of commodities research, as saying.
However, investors are closely watching the outcome of U.S.-Iran nuclear talks which resumed on Tuesday.
A deal could lift U.S. sanctions on Iranian oil and ease global supply tightness.
“Any quick deal would likely put some further downward pressure on prices, as it would help alleviate some concerns over the lack of spare OPEC capacity,” Patterson was quoted as saying.
