Oil prices fall on hopes for Iran nuclear deal, supply concerns persist

On Thursday, oil prices fell in volatile trade as investors assessed the possibility of fresh supplies in markets with tight oil supplies amid hopes of a new nuclear deal with Iran.

Brent crude futures fell 58 cents, or 0.48 percent, to $ 121.02 a barrel, and West Texas Intermediate crude futures fell 96 cents, or 0.84 percent, to $ 113.97 a barrel. The two contracts rose by two dollars and one dollar, respectively, in early transactions.

On Wednesday, U.S. National Security Adviser Jake Sullivan said that the United States and its allies have made progress in nuclear talks with Iran, but issues remain.

The two benchmarks have made big gains this week, with Brent crude futures up more than $14 a barrel, or 13 percent, since Monday, and West Texas Intermediate crude jumping more than $10 or 10 percent a barrel, with increased fears of supply disruptions after the Russian invasion of Ukraine.

US crude stocks fell 2.5 million barrels last week, while US strategic oil reserves fell 4.2 million barrels, according to the US Energy Information Administration data. Market players were expecting a small increase in supplies.