Global crude oil benchmarks slipped more than 1% on Thursday as renewed concerns about rising inventories and a softer physical oil market pressured prices, while traders closely monitored diplomatic efforts between the U.S. and Iran to prevent military escalation. Data from the U.S. Energy Information Administration showed a substantial jump in domestic crude stocks, the largest in 3 years, raising questions about demand strength and near-term supply balances.
Brent crude futures were trading down around $69.90 a barrel, off about 1.3%, and U.S. West Texas Intermediate (WTI) crude stood near $64.36 per barrel, down 1.6% in mid-session deals, according to market data. The surge of 16,000,000 barrels in U.S. crude inventories weighed on sentiment, as it far exceeded analysts’ expectations and suggested weaker consumption or higher supplies than previously anticipated. Weakness in the North Sea physical oil market — a key factor for Brent pricing — also added to downward pressure.
Traders are balancing these bearish indicators with ongoing diplomatic developments in Geneva, where U.S. and Iranian representatives are engaged in indirect talks aimed at averting broader conflict and its potential disruption to oil flows. A resolution could help ease the geopolitical risk premium that has supported prices this year, though the outcome remains uncertain. Markets have factored in tensions around critical supply routes such as routes through the Middle East, making diplomatic progress a key focus for crude forecasts.
Despite the recent pullback, oil prices remain higher this year amid broader risk concerns and volatile supply expectations. The current price movements reflect a combination of inventory data and geopolitical calculus, with traders watching both inventory trends and diplomatic negotiations for clues about the next leg of crude price direction.
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