Oil prices rose on Thursday as a sharper-than-expected decline in US crude inventories reinforced concerns over tightening supply, while ongoing negotiations between Washington and Tehran limited fears of a broader escalation in the Middle East.
International benchmark Brent crude traded at $106.49 per barrel at 10 a.m. local time (0700 GMT), up around 1.4% from the previous close of $105.02.
US benchmark West Texas Intermediate (WTI) increased about 1.5% to $99.75 per barrel, compared with $98.26 in the previous session.
US President Donald Trump signaled that negotiations with Iran remain at a critical stage.
Speaking to reporters at an airport in Washington after returning from a graduation ceremony in Connecticut, Trump said the current situation with Iran was "right on the edge."
Trump said reaching an agreement with Iran could help avoid further escalation and save lives, but stressed that Washington expects a clear and comprehensive response from Tehran, warning that developments could accelerate rapidly if the negotiations fail to deliver a satisfactory outcome.
Trump also said the Iranian officials currently involved in negotiations were "more reasonable" than previous counterparts.
Meanwhile, Iranian lawmaker Feda Hossein Maliki, a member of Iran's National Security Commission, said Pakistan's Army Chief Asim Munir is expected to deliver a new message from the US to Iran.
According to Iranian media reports, Maliki said Munir would convey the message during a planned visit on Thursday, in the latest sign that diplomatic channels between Washington and Tehran remain active.
Oil prices also drew support from fresh US inventory data showing a sharp decline in crude stockpiles.
The US Energy Information Administration said commercial crude oil inventories fell by about 7.9 million barrels last week to 445 million barrels, significantly exceeding market expectations for a decline of around 2.5 million barrels.
Strategic petroleum reserves also dropped by roughly 9.9 million barrels, while gasoline inventories declined by around 1.5 million barrels.
The stronger-than-expected inventory draw reinforced expectations of tighter near-term supply conditions in the world's largest oil-consuming country, supporting upward momentum in crude prices despite signs of relatively lower tensions in the Middle East.
By Duygu Alhan
Anadolu Agency
energy@aa.com.t
