Oil Prices Fall as US-Iran Nuclear Talks Continue
Oil prices fell in the global commodity market on Thursday as nuclear talks between the US and Iran is scheduled to continue Friday, while US stockpile data pointed to sluggish demand.
International benchmark Brent crude decreased by around 1.2%, trading at $63.45 per barrel, down from $64.22 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) fell by about 1.2%, settling at $60.48 per barrel, compared to $61.23 in the prior session.
The fifth round of Iran-US talks over Tehran’s nuclear program will take place in Rome on Friday, Oman’s Foreign Minister Badr Albusaidi announced in a brief statement on Wednesday evening.
In a statement issued on Wednesday, ministry spokesman Esmaeil Baghaei announced that Oman, acting as a mediator between the two sides, pitched a proposal to which Tehran has agreed.
He emphasized that the Iranian negotiating team remains firmly committed to defending “the rights and interests of the Iranian people, particularly in securing the peaceful use of nuclear energy, including uranium enrichment,” and the lifting of what he termed “unjust sanctions.”
As negotiations continue and the potential easing of sanctions looms, expectations are growing that Iran—currently exporting crude oil at limited volumes due to US sanctions—could significantly ramp up its exports.
This development aligns with production increases already underway in several OPEC+ member states, raising concerns over a potential oversupply in global oil markets and putting downward pressure on prices.
Despite ongoing talks, Tehran’s uranium enrichment program remains the primary sticking point between Iran and the US.
Iranian Foreign Minister Abbas Araqchi previously stated that Iran had yet to decide on participating in the fifth round of negotiations after Washington insisted that Tehran fully cease its enrichment activities.
Mixed signals surrounding the talks, coupled with reports of a potential Israeli strike on Iran’s nuclear facilities, are adding to market uncertainty and investor caution.
US commercial crude oil inventories increased by 0.3% during the week ending May 16, according to data released by the Energy Information Administration (EIA) late Wednesday.
Inventories rose by around 1.3 million barrels to 443.2 million barrels, higher than the market prediction of 1.8 million barrels decrease.
Strategic petroleum reserves, which are excluded from commercial crude stocks, increased 800,000 barrels reaching to 400.5 million barrels, the data revealed.
Over the same period, gasoline inventories rose by around 800,000 barrels to 225.5 million barrels. EIA data showed that US crude oil production increased by 5,000 barrels per day (bpd) to about 13.39 million bpd during the week ending May 16.
US crude oil imports increased by 247,000 bpd to approximately 6.08 million bpd, while exports increased by 138,000 bpd to around 3.50 million bpd over the same period.
In the Short-Term Energy Outlook (STEO) released on May 7, the EIA predicted that crude oil output in the country would reach an average of 13.4 million bpd in 2025. Nigeria’s Banking Sector Stable, CBN Reassures Nigerians
