Oil prices fell by more than $1 on Thursday as hopes for a potential US-Iran nuclear deal raised expectations of increased Iranian crude supply, while a surprise build in US inventories added to oversupply concerns. Brent crude dropped $1.49, or 2.3 per cent, to $64.60 a barrel, while US West Texas Intermediate (WTI) sunk $1.46, also 2.3 per cent, to $61.69 by 0405 GMT. Both benchmarks lost around 0.8 per cent on Wednesday. An Iranian official told NBC News that Tehran is open to a deal with Washington in exchange for lifting sanctions. Saudi Arabia has expressed full support for the talks, which have continued in Oman. Adding pressure to prices, the US Energy Information Administration (EIA) reported a 3.5 million-barrel rise in crude stocks last week, defying expectations of a draw. The American Petroleum Institute also reported a 4.3 million-barrel build. Analysts expect prices to remain range-bound but warn of a potential decline towards $50 per barrel if geopolitical tensions ease. Meanwhile, OPEC+ continues to raise output, though OPEC+ has slightly cut its 2024 forecast for supply growth from non-OPEC+ producers. Attribution: Reuters Subediting: M. S. Salama
