Oil prices slipped on Thursday as nuclear talks between the US and Iran is scheduled to continue Friday, while US stockpile data pointed to sluggish demand.
International benchmark Brent crude decreased by around 1.2%, trading at $63.45 per barrel at 10.17 a.m. local time (0717 GMT), down from $64.22 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) fell by about 1.2%, settling at $60.48 per barrel, compared to $61.23 in the prior session.
The fifth round of Iran-US talks over Tehran's nuclear program will take place in Rome on Friday, Oman's Foreign Minister Badr Albusaidi announced in a brief statement on Wednesday evening.
In a statement issued on Wednesday, ministry spokesman Esmaeil Baghaei announced that Oman, acting as a mediator between the two sides, pitched a proposal to which Tehran has agreed.
He emphasized that the Iranian negotiating team remains firmly committed to defending "the rights and interests of the Iranian people, particularly in securing the peaceful use of nuclear energy, including uranium enrichment," and the lifting of what he termed "unjust sanctions."
As negotiations continue and the potential easing of sanctions looms, expectations are growing that Iran鈥攃urrently exporting crude oil at limited volumes due to US sanctions鈥攃ould significantly ramp up its exports.
This development aligns with production increases already underway in several OPEC+ member states, raising concerns over a potential oversupply in global oil markets and putting downward pressure on prices.
Despite ongoing talks, Tehran's uranium enrichment program remains the primary sticking point between Iran and the US.
Iranian Foreign Minister Abbas Araqchi previously stated that Iran had yet to decide on participating in the fifth round of negotiations after Washington insisted that Tehran fully cease its enrichment activities.
Mixed signals surrounding the talks, coupled with reports of a potential Israeli strike on Iran's nuclear facilities, are adding to market uncertainty and investor caution.
Meanwhile, data indicating a rise in US crude inventories further supported downward price movements, signaling weak demand in the world's largest oil-consuming nation.
US crude inventories rose by around 1.3 million barrels to 443.2 million barrels, against the market prediction of 1.8 million barrels decrease, according to data from the US Energy Information Administration (EIA).
Strategic petroleum reserves and gasoline inventories increased 800,000 barrels each reaching 400.5 million barrels and 225.5 million barrels, respectively.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr