NEW YORK / Content Syndication Services / — Oil prices declined in early Asian trading on Thursday as benchmark crude futures retreated from the previous session’s gains, with markets assessing confirmed Middle East developments and U.S. inventory data. Brent crude futures fell 87 cents, or 0.89 percent, to $96.92 a barrel by 0458 GMT, while U.S. West Texas Intermediate crude dropped 78 cents, or 0.81 percent, to $95.24 a barrel.
The pullback followed gains of about 2 percent on Wednesday, when renewed Middle East hostilities lifted crude benchmarks and kept attention on supply routes near the Strait of Hormuz. Thursday’s early move came after Israel and Lebanon agreed to implement a ceasefire, adding a new confirmed regional development to trading conditions that have been shaped by disruptions, shipping concerns and changes in available supply.
Brent and WTI remained elevated in relation to earlier market levels, reflecting the continued importance of physical crude availability, transit access and refinery demand. Brent is the main international crude benchmark, while WTI is the principal U.S. benchmark. Movements in both contracts influence fuel pricing, commodity trading, inflation indicators and energy market expectations across major consuming economies.
Supply Data Tighten Focus
The Energy Information Administration reported that U.S. commercial crude inventories, excluding the Strategic Petroleum Reserve, fell by 8.0 million barrels in the week ended May 29. Stocks stood at 433.7 million barrels, about 3 percent below the five-year average for this time of year. The weekly data gave the market a clearer reading of U.S. supply conditions as crude futures moved lower.
The Energy Information Administration also reported that total motor gasoline inventories rose by 3.4 million barrels and distillate fuel inventories increased by 1.5 million barrels. Refinery activity remained a central part of the supply picture, while crude exports continued to affect stock levels. The figures showed a sharper draw in crude inventories alongside builds in refined products.
Benchmarks Track Regional Developments
Oil markets continued to track confirmed developments involving the United States, Iran, Israel and Lebanon, along with shipping conditions tied to the Strait of Hormuz. The International Energy Agency has warned that global oil inventories have been drawing rapidly ahead of the peak summer demand period. That made commercial stock data an important factor alongside regional developments affecting supply routes.
Thursday’s early trading showed crude prices easing despite a large U.S. inventory draw, as Brent traded near $97 a barrel and WTI near $95. The move reflected the combined impact of benchmark repricing, official stockpile data and confirmed geopolitical developments. Oil markets remained focused on verifiable changes in supply, shipping access, refinery demand and commercial inventories.