Oil prices fall on hopes of US-Iran nuclear deal
Oil prices fell sharply on Thursday as signs of progress in US-Iran nuclear negotiations and an unexpected rise in US crude inventories raised concerns about a potential supply glut.
Oil prices fell sharply on Thursday as signs of progress in US-Iran nuclear negotiations and an unexpected rise in US crude inventories raised concerns about a potential supply glut.
Brent crude futures dropped as much as 3.7% to $63.68 a barrel in early trade before paring losses to $63.98. US West Texas Intermediate (WTI) crude fell 3.3% to $61.05.
The sell-off followed remarks by US President Donald Trump, who said Washington was in "very serious negotiations with Iran for long-term peace" during his tour of the Persian Gulf, adding that Tehran had "sort of" agreed to US terms for a possible deal.
Traders view a possible agreement as a step toward easing sanctions on Iran, which could pave the way for the return of Iranian oil exports to global markets.
Adding to the downward pressure, data released late Wednesday showed an unexpected build in US crude inventories last week, fueling concerns about oversupply.
"The market is reacting to both the political developments and the inventory surprise," said a trader at a London-based commodities firm. "Any indication that Iranian barrels could re-enter the market weighs on prices."
Earlier this week, markets rallied on a US-China trade truce and a flurry of investment deals unveiled during Trump's visit to the Middle East.
Still, oil markets remain volatile as investors weigh the potential timing and terms of any US-Iran agreement, along with broader macroeconomic risks.
