Image Source: Unsplash
 

West Texas Intermediate (WTI) Oil price declines after two days of gains, trading around $63.50 per barrel during the Asian hours on Thursday. Crude Oil prices weakened after Tehran confirmed it would hold talks with the United States (US) in Oman on Friday, easing fears that a wider conflict could disrupt Middle East Oil supplies.

However, Oil prices jumped on media reports suggesting the talks might collapse, but officials from both sides later said discussions would proceed as scheduled, even though the agenda remains unsettled.

Iranian Foreign Minister Abbas Araghchi said talks will be held in Oman on Friday, while a White House official confirmed continued engagement on a potential nuclear deal. Uncertainty persists over the scope, with Tehran aiming to limit discussions to its nuclear program and Washington seeking to include missiles, regional militancy, and human rights.

Dollar-denominated Oil prices also face headwinds from a stronger US Dollar (USD), driven by hawkish Federal Reserve signals and expectations of slower rate cuts. Fed Governor Lisa Cook said she would not support further easing without clearer evidence that inflation is cooling, highlighting concerns over stalled disinflation.

Meanwhile, Energy Information Administration (EIA) data showed US crude inventories fell by 3.455 million barrels last week, far exceeding expectations for a 2 million draw, as winter storms disrupted supply.

More By This Author: