Oil Rises as US Inventories Fall And Concerns Persist Over Talks With Iran

Oil prices continued to rise on Thursday after a sudden drop in US crude oil inventories in the previous session, while investors awaited the outcome of US-Iran nuclear talks that could lead to a rapid increase in crude supplies in global markets.

The price of Brent crude rose 34 cents, or 0.4 percent, to $91.89 at 0920 GMT, while the price of US West Texas Intermediate crude rose 51 cents, or 0.6 percent, to $90.20 a barrel.

The Energy Information Administration said that US crude oil stocks fell by 4.8 million barrels per day in the week ending February 4 to 410.4 million barrels, the lowest level for commercial stocks since October 2018.

Analysts, in a Reuters poll, had expected an increase of 369,000 barrels.

The administration’s data indicated that the supply of US petroleum products, which is the best indicator of demand, amounted to 21.9 million barrels per day in the past four weeks due to the strength of economic activity across the country.

However, investors are closely watching the outcome of the US-Iran nuclear talks, which resumed this week. A deal could potentially lift US sanctions on Iranian oil and ease global supply shortages.