SINGAPORE: Oil prices were steady on Thursday, after rallying on an unexpected drop in US crude inventories in the previous session, as investors await the outcome of US-Iran nuclear talks that could add crude supplies quickly to global markets.
Brent crude futures slid 10 cents, or 0.1%, to $91.45 a barrel while US West Texas Intermediate crude was at $89.74 a barrel, up 8 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. read more
US crude inventories (USOILC=ECI) fell 4.8 million barrels in the week to February 4, dropping to 410.4 million barrels – their lowest for commercial inventories since October 2018, the Energy Information Administration said.
US product supplied – the best proxy for demand – peaked at 21.9 million barrels per day (bpd) over the past four weeks due to strong economic activity nationwide, EIA data showed. Investors are closely watching the outcome of US-Iran nuclear talks which resumed this week. A deal could lift US 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.
Separately, US President Joe Biden and King Salman of Saudi Arabia discussed energy supplies and developments in the Middle East, including in Iran and Yemen, during a phone call.
King Salman also spoke about maintaining balance and stability in the oil markets and emphasised the need to maintain the OPEC+ supply agreement, state news agency said. In Europe, US Vice President Kamala Harris will be meeting its allies and partners in Munich next week seeking to deter Russian aggression in Ukraine.
