Oil Prices dropped on Thursday as investors assessed geopolitical risks.
The West Texas Intermediate for March delivery lost 1.9 U.S. dollars, or 2 percent, to settle at 91.76 dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery decreased 1.84 dollars, or 1.9 percent, to close at 92.97 dollars a barrel on the London ICE Futures Exchange.
“Oil prices have been extremely volatile for days,” as the market was caught between Ukraine crisis and Iran news, Carsten Fritsch, energy analyst at Commerzbank Research, said Thursday in a note.
“Reports that the U.S. and Iran were about to reach agreement in the ongoing nuclear talks” caused prices to slide, he said.
Elsewhere, traders keep a close eye on updates concerning Russia-Ukraine tensions.
Market participants also parsed weekly U.S. fuel inventory data.
The U.S. Energy Information Administration (EIA) reported Wednesday that the nation’s crude oil stockpiles increased by 1.1 million barrels during the week ending Feb. 11. Analysts surveyed by S&P Global Platts had forecast the U.S. crude supplies to show a fall of 200,000 barrels.
According to the EIA, total motor gasoline inventories decreased by 1.3 million barrels last week, while distillate fuel inventories decreased by 1.6 million barrels.
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Xinhua