Oil Retreats on Iran Talks, Rising U.S Crude Stockpiles
Crude oil prices were in full retreat Thursday ahead of the much-anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) scheduled to hold today.
There was also an unexpected rise in U.S crude inventories and news that talks between Iran and the US will resume at the end of the month, said OANDA analyst Jeffrey Halley in a Thursday note.
Brent crude dropped 3.35% to $81.30 per barrel and US West Texas Intermediate crude declined 3.50% to $83.10 per barrel, according to analysts.
In Asia, Brent has remained steady while WTI slipped below $80 to $79.90 per barrel, the analyst noted. Data from the US Energy Information Administration showed crude inventories in the US rose 3.3 million barrels, with gasoline and distillate inventory moves to balance each other out.
The price drop comes even as stocks at the Cushing hub fell to multi-year lows, according to Halley.
The US and Iran talks have renewed the prospect of a rush of Iranian crude, which prompted a sell-off in oil markets, and likely wiped out any last hope that OPEC and its allies will boost output.
These may be supportive later in the session, the analyst noted.
Early Thursday front-month Brent crude was recovering somewhat, up nearly 3% at $83.67 per barrel, while WTI was also up nearly 2% at $82.38 per barrel. # Oil Retreats on Iran Talks, Rising U.S Crude Stockpiles
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