BEIJING/SINGAPORE: Oil prices edged lower on Thursday after recent gains, as investors weighed the supply and demand outlook against data showing a rise in US crude and gasoline inventories.
Brent crude fell 28 cents, or 0.4%, to $64.96 a barrel by 0749 GMT, while West Texas Intermediate for March delivery slipped 19 cents, or 0.3%, to $60.43.
Prices had risen more than 0.4% on Wednesday, following a 1.5% gain a day earlier, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields due to power distribution problems.
On Wednesday, US President Donald Trump softened his rhetoric on Greenland, ruling out the use of force and stepping back from tariff threats aimed at Europe. The easing of tensions could support global economic growth and oil demand, said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
“At the same time, the United States has not ruled out possible military involvement in Iran, which is also supporting oil prices,” Gao said.
Trump said he hoped there would be no further US military action in Iran but added Washington would act if Tehran resumed its nuclear programme.
Oil prices are likely to hold around $60 a barrel amid easing geopolitical risks, said Tony Sycamore, an analyst at IG.
Trump also said he believed a deal to end the war between Russia and Ukraine was nearing. Any end to the conflict could lead to the removal of US sanctions on Russia, easing supply disruptions and weighing on prices.
The International Energy Agency revised up its forecast for global oil demand growth in 2026, pointing to a slightly narrower surplus.
US crude and gasoline inventories rose last week, while distillate stocks fell, according to figures from the American Petroleum Institute. Crude inventories rose by 3.04 million barrels in the week ended January 16, gasoline stocks increased by 6.21 million barrels, and distillates fell by 33,000 barrels.
Eight analysts polled by Reuters had forecast an average rise of about 1.1 million barrels in crude inventories.
“High crude inventories are limiting further gains in oil prices in an oversupplied market,” said Yang An, an analyst at Haitong Futures.
— Reuters
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