Oil prices fell on Thursday after an unexpected increase in US crude inventories and signs of progress in Russia-Ukraine diplomacy eased supply concerns.
International benchmark Brent crude was trading at $62.35 per barrel at 10.05 a.m. local time (0705 GMT), down 0.1% from the previous close of $62.42.
US benchmark West Texas Intermediate (WTI) also decreased by about 0.08% to $58.44, compared to $58.49 in the prior session.
The US Energy Information Administration (EIA) reported that commercial crude inventories rose by 2.8 million barrels last week to 426.9 million barrels, defying market expectations for a 1.3 million-barrel draw.
Strategic petroleum reserves, which are not included in commercial inventories, increased by 500,000 barrels to 411.4 million barrels.
US gasoline stocks also climbed by 2.5 million barrels to 209.9 million barrels, reinforcing perceptions of soft demand in one of the world's largest oil consumers.
The data added downward pressure on prices by signaling weaker consumption and the potential for further stock builds.
On the geopolitical front, optimism over renewed diplomacy supported expectations that some Russian supply could return to the market.
Kremlin adviser Yury Ushakov said US President Donald Trump's special envoy Steve Witkoff will visit Moscow next week, boosting hopes for a potential cease-fire or easing of restrictions on Russian energy exports.
Analysts said rising inventories combined with easing geopolitical tensions could add further pressure on already elevated global oil stocks.
Investors are now watching the OPEC+ meeting on Sunday. The group agreed on Nov. 2 to boost December output by 137,000 barrels per day, while eight member countries plan to halt further increases during January-March due to seasonal factors.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
