Oil Prices Ease as Market Assesses Middle East Tension
Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a U.S. decision to move personnel from the Middle East ahead of talks with Iran over the latter's nuclear-related activity.
Brent crude futures were down 30 cents, or 0.4%, to $69.47 a barrel at 0433 GMT, while U.S. West Texas Intermediate crude was 23 cents lower, or 0.3%, at $67.92 a barrel.
A day earlier, both Brent and WTI surged more than 4% to their highest since early April.
U.S. President Donald Trump said the U.S. was moving personnel because the Middle East "could be a dangerous place". He also said the United States would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful.
Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.
"Some of the surge in oil prices that took Brent above $70 per barrel was overdone. There was no specific threat identified by the U.S. on an Iranian attack," said Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank Australia.
Source : Reuters
