Oil prices edged lower on Thursday as weak demand signals from the world’s two largest oil consumers, the US and China, outweighed geopolitical risk premiums linked to US-Iran negotiations.
International benchmark Brent crude traded at $69.11 per barrel at 9.28 a.m. local time (0628 GMT), down 0.39% from the previous close of $69.38.
US benchmark West Texas Intermediate (WTI) fell 0.37% to $64.61 per barrel, compared with $64.85 in the previous session.
Prices came under pressure after US crude and gasoline inventories posted a much larger-than-expected increase, raising concerns over demand in the world's biggest oil consumer.
According to data released by the Energy Information Administration (EIA), US commercial crude oil inventories rose by around 8.5 million barrels in the week ending Feb. 6, far exceeding market expectations of about 700,000 barrels. Gasoline inventories also increased by roughly 1.2 million barrels during the same period.
The demand outlook was also clouded by economic data from China, the world's second-largest oil consumer.
Data showed consumer price growth slowed in January, while producer prices extended their declines, highlighting persistent deflationary pressures.
China's consumer price index rose 0.2% year-on-year, below expectations, while the producer price index fell 1.4%.
Analysts said the figures suggested cautious consumer spending and reinforced concerns over weak fuel demand, weighing on oil prices.
Meanwhile, expectations of increased travel and fuel consumption ahead of China's Lunar New Year provided some support to the market, though recent economic indicators pointed to sluggish growth.
Geopolitical developments offered a limited offset to the demand-driven pressure.
US President Donald Trump said there was no concrete outcome from his meeting with Israeli Prime Minister Benjamin Netanyahu, but emphasized that negotiations with Iran should continue.
However, Trump told Axios on Tuesday that he was considering deploying a second aircraft carrier strike group to the region in preparations for possible military action if talks with Iran fail.
US and Iranian officials met in Oman on Feb. 6 and described the talks as constructive, though lingering tensions between the two sides have kept a risk premium in oil prices.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr