Oil Maintains Losses For Third Straight Day

Oil prices declined on Thursday for the third consecutive session, with expectations that progress in talks between the United States and Iran regarding the nuclear deal might lead to lifting sanctions, thus increasing market supplies.

Brent crude futures for July delivery fell by $1.55, or 2.3%, to finish at $65.11 per barrel, its lowest closing level since April 13.

The West Texas Intermediate (WTI) crude futures for June delivery dropped by $1.31, or 2.1%, to close at $62.05 per barrel.

This is the lowest closing level for the U.S. benchmark crude most active contracts since April 26.

Yesterday, data from the United States Energy Information Administration (EIA) showed an increase in crude oil inventories by 1.3 million barrels for the week ended May 14, rising for the first time in three weeks against market expectations.

Gasoline stockpiles dropped 2 million barrels, while distillate inventories decreased by 2.3 million barrels.

In addition, the resurgence of the coronavirus pandemic in India, the world’s third-largest importer of crude oil, amid a new wave that saw huge increases in the number of cases, also negatively impacted oil prices this week.