Oil prices declined during Thursday's trading, amid expectations of a potential nuclear deal between the United States and Iran. Meanwhile, a surprise increase in U.S. crude oil inventories last week intensified investor concerns about oversupply.
Brent crude futures for July delivery fell by 2.3%, or $1.52, to $64.57 per barrel as of 08:06 a.m. Mecca time.
Meanwhile, West Texas Intermediate (WTI) crude futures for June delivery dropped by 2.35%, or $1.49, to $61.66 per barrel.
Yuki Takashima, an economist at Nomura Securities, stated: "The new wave of selling was driven by expectations that a nuclear deal between the U.S. and Iran would ease American sanctions on Iran," according to Reuters.
This came after data from the Energy Information Administration showed that U.S. crude inventories rose by 3.5 million barrels to 441.8 million barrels in the week ending May 9, contrary to analysts’ expectations of a 1.1 million-barrel decline.
The International Energy Agency is expected to release its report later today, following OPEC’s move to cut its forecast for oil supply growth from the U.S. and other non-OPEC+ producers to 800,000 barrels per day in 2025, down from last month’s estimate of 900,000 barrels per day
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