Oil Prices Plummet Amid Record US Inventory Build-Up

Oil prices fell on Thursday after a significant jump in US crude inventories. The Energy Information Administration reported that US stockpiles rose by 16 million barrels last week, the largest increase in three years. Brent crude futures dropped $1.05, or 1.5%, to $69.80 a barrel, while WTI futures lost $1.26, or 1.9%, to $64.16.

Analysts point to weakness in the North Sea physical oil market as another factor contributing to the price drop. UBS analyst Giovanni Staunovo noted that markets are focusing on the outcome of US-Iran talks, which could impact supply and demand.

The US and Iran are set to meet for their third round of nuclear talks in Geneva on Thursday. Meanwhile, Saudi Arabia is boosting oil production and exports as a contingency plan in case of any disruption from a potential US strike on Iran. OPEC+ is also considering raising oil output by 137,000 barrels per day in April.