Crude oil prices were steady on Thursday on an unexpected drop in U.S. crude oil inventories and as investors await the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global markets.
Brent crude oil inched down by 0.14% to $91.43 per barrel while WTI inched down by 0.07% to $89.60 per barrel.
According to the Energy Information Administration data, U.S. crude inventories fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels – their lowest for commercial inventories since October 2018.
The surprise crude draw reinforces how tight the oil market remains, OANDA analyst Edward Moya said in a note.
“Crude prices have too many catalysts that support a move to $100 oil in the near future,” he said, pointing to geopolitical tensions across Europe and the Middle East, and improving demand globally as normal travel resumes in large parts of the world.
However, investors are closely watching the outcome of U.S.-Iran nuclear talks which resumed this week. A deal could lift U.S. sanctions on Iranian oil and ease global supply tightness.
