Oil prices drop 4% as supply disruption fears ease

Oil drilling rigs

Oil prices fell on Thursday, ending a five-day winning streak, after US President Donald Trump’s remarks eased concerns over a potential military escalation against Iran and the possible impact on global supplies.

Brent crude futures for March delivery declined 4.15%, or $2.76, to $63.76 per barrel.

February Nymex crude futures dropped 4.56%, or $2.83, to $59.19 per barrel.

The decline followed Trump’s statement that the pace of crackdown on protesters in Iran has eased, that killings have decreased, and that there are no current plans for large-scale executions.

Oil prices had reached multi-month highs in recent sessions after Trump threatened military intervention in Iran.

Additional pressure came from US Energy Information Administration data released yesterday showing crude and gasoline inventories rose more than expected last week.

Meanwhile, Venezuela began reversing production cuts imposed under US sanctions, with crude exports resuming, according to sources cited by Reuters.