Oil prices edged lower on Wednesday reversing earlier gains driven by potential supply disruption fears in Iran as investors turned their focus to data showing a large build in US crude stockpiles.
International benchmark Brent crude traded at $64.59 per barrel at 10.32 a.m. local time (0732 GMT), down about 0.6% from Tuesday's close of $64.98.
US benchmark West Texas Intermediate (WTI) stood at $60.48 per barrel, down around 0.57% from the previous close of $60.83.
The American Petroleum Institute (API) reported that US crude inventories rose by about 5.3 million barrels last week, far exceeding market expectations for a roughly 2 million-barrel increase.
The unexpected build in inventories raised concerns over demand in the world's largest oil consumer, placing downward pressure on prices.
Market participants now await official figures from the US Energy Information Administration (EIA), due later on Wednesday, for confirmation of crude trends.
Prices had risen earlier amid heightened geopolitical risk related to developments in Iran, as investors closely monitored Washington's stance toward Tehran. The developments raised concerns that escalating tensions could lead to potential supply disruptions from the region.
US President Donald Trump said Tuesday that the US is prepared to take "very strong action" if reports that Iran plans to execute protesters prove accurate.
Earlier Tuesday, Trump called on Iranian anti-government demonstrators to continue protesting across the country, telling them that "help is on its way." He also threatened tariffs on countries trading with Tehran in an effort to isolate the regime further, reinforcing the geopolitical premium in oil markets.
However, projections indicating that global demand is likely to continue lagging behind supply have strengthened expectations of a persistent global oversupply, limiting upside in prices despite ongoing geopolitical tensions.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr