NEW DELHI: Oil prices slid more than 3% on Thursday after U.S. President Donald Trump said killings in Iran's crackdown on nationwide protests were stopping, tempering concern over military action against Iran and supply disruption.
Brent futures were down $2.21, or 3.32%, at $64.31 a barrel by 0727 GMT, while U.S. West Texas Intermediate crude slipped $2.05, or 3.31%, to $59.97 a barrel.
Both benchmarks settled more than 1% higher on Wednesday but gave back most gains after Trump's remarks reduced fear of a potential U.S. attack on Iran.
Trump on Wednesday afternoon said he had been told that killings of anti-government protesters in Iran were subsiding and he believed there was no plan for large-scale executions.
"Selling pressure prevailed on expectations that the U.S. would not take military action against Iran," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
Bearish factors also include larger-than-expected U.S. crude inventories, he said.
"While geopolitical risks remain high and unforeseen events could disrupt the supply-demand balance, WTI is likely to trade in the $55-$65 range for the time being," Kikukawa said.
The United States is withdrawing some personnel from military bases in the Middle East, a U.S. official said on Wednesday, after a senior Iranian official said Tehran had told neighbours it would hit American bases if Washington strikes.
Further weighing on prices, U.S. crude and gasoline inventories rose more than analysts estimated last week, the Energy Information Administration said on Wednesday.
Crude stocks climbed by 3.4 million barrels to 422.4 million barrels in the week ended January 9, compared with analysts' expectations of a 1.7 million-barrel draw.
Adding to the bearish tone, Venezuela has begun reversing oil production cuts made under a U.S. embargo as crude exports were also resuming, three sources told Reuters.
On the demand side, the Organization of the Petroleum Exporting Countries on Wednesday said oil demand is likely to rise at a similar pace in 2027 as this year and published data indicating a near balance between supply and demand in 2026, contrasting with other forecasts of a major glut.
Meanwhile, China's crude oil imports rose 17% from a year earlier in December, while total imports in 2025 rose 4.4%, government data showed, with daily crude import volume hitting all-time highs in December and for all of 2025. - Reuters
