Brent crude traded slightly lower on Thursday as easing geopolitical tensions and signs of rising oil inventories in the US weakened supply-side concerns.
International benchmark Brent crude was trading at $63.85 per barrel at 10.16 a.m. local time (0716 GMT), down 0.6% from the previous close of $64.23.
US benchmark West Texas Intermediate (WTI) also decreased by 0.5% to $59.77, compared to $60.10 in the prior session.
The modest pullback in prices came as geopolitical risk premiums faded, reducing fears of near-term supply disruptions.
Comments from US President Donald Trump suggesting that executions linked to protests in Iran had been halted helped ease concerns that Washington could move toward direct military action or tougher sanctions against Tehran in the near term.
The remarks tempered fears that tensions involving Iran could disrupt oil production or key shipping routes such as the Strait of Hormuz.
Trump had previously warned that the US would respond harshly if protesters were executed, while noting that Washington has multiple tools, beyond military action, to support demonstrators, including economic measures.
Oil prices also faced pressure from more conciliatory signals surrounding US-Venezuela relations. Speaking at a signing ceremony at the White House, Trump said the US was "working well" with Venezuela's interim leadership, later adding on social media that discussions with Delcy Rodriguez covered oil, mining, trade and national security.
On the demand side, unexpectedly strong increases in US crude and gasoline inventories added to downward pressure by fueling concerns over consumption in the world's largest oil consumer.
Data from the US Energy Information Administration (EIA) showed that commercial crude oil inventories rose by around 3.4 million barrels last week, defying market expectations for a draw of about 1.7 million barrels.
US gasoline stocks also surged by roughly 9 million barrels, reinforcing signs of ample supply and softer demand.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
