Key Moments
- Brent and WTI futures fell nearly 3% in Asian trading, ending a five-day winning streak after recent double-digit gains.
- Comments from U.S. President Donald Trump on Iran and Venezuela eased fears of imminent supply disruptions and reduced the geopolitical risk premium.
- U.S. EIA data showed a 3.4 million-barrel crude inventory build and a 9 million-barrel gasoline increase, weighing on near-term bullish sentiment.
Oil Futures Slide After Sharp Run-Up
Investing.com– Oil prices declined sharply in Asian trading on Thursday, breaking a five-session upswing, after U.S. President Donald Trump adopted a more measured tone on Iran, reducing concerns about immediate supply interruptions.
Brent Oil Futures for March delivery dropped 2.8% to $64.67 per barrel by 20:25 ET (01:25 GMT). West Texas Intermediate (WTI) crude futures slid 3% to $60.22 per barrel over the same period.
Over the prior five sessions, both benchmarks had climbed more than 10%, reaching multi-month peaks as traders reacted to the possibility that unrest in Iran could spur U.S. military action and disrupt production or shipping flows.
| Contract | Move | Price | Time |
|---|---|---|---|
| Brent Oil Futures (Mar) | -2.8% | $64.67 per barrel | 20:25 ET (01:25 GMT) |
| WTI Crude Futures | -3% | $60.22 per barrel | 20:25 ET (01:25 GMT) |
Trump’s Iran Comments Cool Escalation Fears
Trump said on Wednesday he had been assured that Iranian authorities would stop killing protesters and that he believed there was currently no plan for large-scale executions, easing concerns that Washington was preparing an immediate military response to demonstrations against the government of Supreme Leader Ayatollah Ali Khamenei.
Those remarks helped unwind part of the geopolitical risk premium embedded in crude prices on expectations of a possible escalation affecting one of OPEC’s largest producers.
Heightened tensions in Iran had recently supported the rally in oil, as markets focused on potential disruptions to crude production or to key shipping routes if unrest intensified or if U.S. intervention followed.
Signals of Closer U.S.-Venezuela Engagement Add Pressure
Additional downward pressure on oil came from Trump’s comments about Venezuela, another significant producer subject to U.S. sanctions.
The U.S. president said he spoke earlier on Thursday with Venezuela’s interim leader, Delcy Rodríguez, describing the call as very positive. Trump said discussions covered “oil, minerals, trade and, of course, national security,” adding that “we are making tremendous progress, as we help Venezuela stabilize and recover.”
According to market participants, the possibility of improving relations between Washington and Caracas increased expectations that Venezuelan crude exports could rise over time, easing concerns about global supply tightness.
Inventory Data Highlight Ample U.S. Supply
Beyond geopolitical developments, traders also monitored fresh indications of rising U.S. inventories.
Figures from the U.S. Energy Information Administration showed that crude stockpiles increased by 3.4 million barrels last week, compared with analyst forecasts for a 1.7 million-barrel draw.
Gasoline inventories rose by 9 million barrels, while distillate stocks were described as nearly flat, as domestic refining runs and imports moved higher.
The larger-than-anticipated builds underscored plentiful supply in the world’s largest oil-consuming market and tempered near-term bullish sentiment in crude.
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