Oil falls over $1 on easing geopolitical fears and oversupply worries

Oil prices dropped on Thursday, with Brent futures losing $1.47, or 1.58%, to $91.29 a barrel and US West Texas Intermediate crude falling $1.24, or 1.43%, to $85.29. The Express Tribune reported that the declines erased gains from Wednesday, as reduced fears of wider conflict in the Middle East lowered crude’s risk premium.

Expectations of ceasefire efforts between Russia and Ukraine, alongside hopes that the Iran conflict would not intensify before next week’s US-China summit, weighed on prices. The market also faced oversupply concerns: OPEC+ production increased in October, while US crude inventories rose by 9 million barrels in the latest week, according to data cited by market sources. Official US inventory figures were due later on Thursday.