LONDON: Oil prices fell more than 3% on Thursday after US President Donald Trump said killings of demonstrators in nationwide protests in Iran were stopping, easing concerns over potential military action and supply disruptions.
Brent futures fell $2.19, or 3.3%, to $64.33 a barrel, while US West Texas Intermediate crude dropped $2.07, or 3.34%, to $59.95.
Brent prices had climbed above $66.50 a barrel on Wednesday but gave back most of those gains after Trump’s remarks reduced expectations of a near-term US attack on Iran.
“Trump turned the oil market mood by saying he had received assurances that killings of demonstrators in Iran had stopped,” said John Evans, analyst at PVM, adding that prices now reflect expectations of near-term oversupply.
The US is withdrawing some personnel from military bases in the Middle East, a US official said, after a senior Iranian official warned that Tehran would strike American bases if Washington attacks.
Further weighing on prices, US crude and gasoline inventories rose more than expected last week, the Energy Information Administration said.
On the supply side, Venezuela has begun reversing oil production cuts made under a US embargo as crude exports resume, according to sources.
On the demand front, OPEC said oil demand is expected to grow at a similar pace in 2027 as this year, with data pointing to a near balance between supply and demand in 2026. Meanwhile, China’s crude oil imports rose 17% year-on-year in December, with daily volumes hitting record highs for both the month and 2025.
— Reuters
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