Oil Prices Plummet Amidst Rising US Stockpiles and US-Iran Tensions
Oil prices took a hit on Thursday after the largest jump in US crude inventories in three years.
The rise in stockpiles, which reached 16 million barrels last week, weighed heavily on oil prices, causing Brent crude futures to drop by $1.05 or 1.5% to $69.80 a barrel, while WTI futures lost $1.26 or 1.9% to $64.16.
The North Sea physical oil market is also showing signs of weakness, with UBS analyst Giovanni Staunovo stating that markets would focus on the outcome of Thursday's third round of US-Iran talks.
The talks aim to avert military conflict between the two nations, which has been a major concern for oil prices this year. Saudi Arabia is also boosting oil production and exports in a contingency plan should any US strike on Iran disrupt supplies from the Middle East.