Oil Prices Drop as Global Supply Outlook Improves

Global oil prices dropped significantly as concerns over Iran eased, and new supply data from the United States, Venezuela, and the Middle East fueled expectations of a more balanced and possibly oversupplied market in the near future, The Caspian Post reports, citing foreign media.

Crude benchmarks dropped by more than 3% after US President Donald Trump indicated that the violent suppression of protests in Iran appeared to be easing. His remarks, which suggested an absence of imminent large-scale executions or immediate military escalation, softened market anxiety over possible disruptions to Iranian oil flows. As a result, the geopolitical risk premium that had built up earlier in the week began to unwind.

Brent crude retreated to the mid-$64 per barrel range, while US West Texas Intermediate slipped below $60, both reversing gains that had pushed prices to multi-month highs only a day earlier. Analysts noted that while tensions in the Middle East remain unresolved, the immediate threat of supply disruption has diminished, reducing speculative pressure on prices.

Additional downward momentum came from US inventory data, which showed a larger-than-expected increase in both crude oil and petrol stocks. The rise pointed to softer short-term demand and reinforced concerns that supply growth may be outpacing consumption, particularly in mature markets.