Oil prices fell on Wednesday on receding fears of an imminent output cut by the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+.
Potential OPEC+ production cuts may not be imminent and are likely to coincide with the return of Iran to oil markets should that country clinch a nuclear deal with the West, OPEC sources told Reuters. Â
Concurrently, a senior US official told Reuters that Iran had dropped some of its main demands on resurrecting a deal.
Global benchmark Brent crude futures fell 40 cents, or 0.4 percent, to $99.82 a barrel, after rising 3.9 percent on Tuesday, according to Reuters.Â
The US West Texas Intermediate crude futures contract was down 27 cents, or 0.29 percent, at $93.47 a barrel, having jumped 3.7 percent the previous day.
Both contracts soared on Tuesday after Saudi Arabia flagged the possibility of supply cuts to balance the market.Â
US gas prices shot above $10 for the first time in about 14 years due to a surge in prices in Europe, where tight supplies persist.
Underlining tight supply, US crude stockpiles fell by about 5.6 million barrels for the week ended Aug. 19., according to market sources citing American Petroleum Institute figures on Tuesday, against analysts’ estimate of a drop by 900,000 barrels in a Reuters poll.
But gasoline inventories rose by about 268,000 barrels, while distillate stocks increased by about 1.1 million barrels.
