The WTI price edges lower to near $66.40 in Thursday’s early Asian session.
Crude inventories in the United States rose by 3.845 million barrels last week, noted EIA.
Iran has officially suspended its cooperation with the IAEA.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.40 during the early Asian trading hours on Thursday. The WTI price declines on a surprise build in US crude supplies. Oil traders await cautiously ahead of an OPEC+ meeting to decide the group's August output policy.
US crude oil inventory unexpectedly rose last week, signaling weaker demand and undermining the WTI price. The Energy Information Administration (EIA) weekly report showed crude oil stockpiles in the US for the week ending June 27 rose by 3.845 million barrels, compared to a fall of 5.836 million barrels in the previous week. The market consensus estimated that stocks would decline by 2 million barrels.
An Iranian official stated that Iran's Supreme National Security Council must approve any future International Atomic Energy Agency (IAEA) inspections of its nuclear installations, per Reuters. The government has accused the agency of supporting Western countries and justifying Israel's air strikes.
Oil traders will closely monitor the developments surrounding geopolitical risks in the Middle East. Any signs of escalation in the region or fears of oil supply disruptions could boost the WTI price in the near term.
The US June Nonfarm Payrolls (NFP) report on Thursday will be closely watched as it might offer some hints about the timing of interest rate cuts by the US Federal Reserve (Fed) this year. A lower interest rate regime could boost economic activity and thereby increase oil demand, supporting the WTI price.
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