Oil drops on potential for U.S.-Iran talks to add crude supplies | Reuters

Oil drops on potential for U.S.-Iran talks to add crude supplies | Reuters

Oil prices fell on Thursday, after rallying on an unexpected drop in U.S. crude inventories in the previous session, as investors await the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global markets.

Brent crude futures slid 28 cents, or 0.3%, to $91.27 a barrel at 0714 GMT, while U.S. West Texas Intermediate crude was at $89.47 a barrel, down 19 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

U.S. crude inventories (USOILC=ECI) fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels - their lowest for commercial inventories since October 2018, the Energy Information Administration said. Analysts in a Reuters poll had forecast a 369,000-barrel rise. read more