Oil little changed as investors eye U.S.-Iran talks
Oil prices edged down 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 that could add crude supplies quickly to global markets, News.Az reports citing Reuters.
Brent crude futures slid 7 cents, or 0.1%, to $91.48 a barrel at 0425 GMT, while U.S. West Texas Intermediate crude was at $89.62 a barrel, down 4 cents.
Robust demand recovery from the coronavirus pandemic has kept global oil supplies snug, with inventories at key fuel hubs globally hovering at multi-year lows.
U.S. crude inventories fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels - their lowest for commercial inventories since October 2018, the Energy Information Administration said. Analysts in a Reuters poll had forecast a 369,000-barrel rise.
However, investors are closely watching the outcome of U.S.-Iran nuclear talks which resumed this week. A deal could lift U.S. sanctions on Iranian oil and ease global supply tightness.
The White House publicly pressured Iran on Wednesday to revive the 2015 Iran nuclear agreement quickly, saying that it will be impossible to return to the accord if a deal is not struck within weeks.
"The core uncertainty remains whether Iran is willing to sign on the dotted line," Eurasia analyst Henry Rome said, adding that the consultancy was holding onto a 40% call on a return to the agreement.