Oil prices fall on profit-taking, despite API data surprise | Reuters

Oil prices fall on profit-taking, despite API data surprise | Reuters

Oil prices slipped for a third session on Wednesday on profit taking due to concerns of a possible rise in supplies from Iran despite industry data showing a surprised drop in U.S. oil inventories.

Brent crude futures edged down 8 cents, or 0.1%, to $90.70 a barrel by 0825 GMT, while U.S. West Texas Intermediate crude was at $89.18 a barrel, down 18 cents, or 0.2%.

The contracts slid about 2% on Tuesday as Washington resumed indirect talks with Iran to revive a nuclear deal. Such a deal could lift U.S. sanctions on Iranian oil and quickly add supplies to the market, although a number of vital issues still need to be ironed out. read more

"With the negotiations ongoing, the oil price is likely to lose steam in the next week, despite the bump higher we've seen today," said CMC Markets' analyst Tina Teng, adding that there has also been some profit taking among investors who have turned cautious after prices hit more than seven-year highs.