WTI retreats toward $60.00 as fears of a US military strike on Iran ease

West Texas Intermediate (WTI) Oil price lost its daily gains and is extending its losses for the second successive session, trading around $60.10 per troy ounce during the early European hours on Thursday. Crude Oil prices remain subdued amid easing fears of an imminent US military strike on Iran.

US President Donald Trump said reports indicated Iran’s crackdown-related killings were subsiding and that no large-scale executions were planned, though he did not rule out potential US military action, noting Washington would continue to monitor developments, according to Reuters.

Reuters quoted Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, as saying that selling pressure dominated amid expectations that the US would refrain from military action against Iran. Kikukawa added that bearish sentiment was reinforced by larger-than-expected US crude inventory builds. While geopolitical risks remain elevated and unexpected events could still disrupt the supply–demand balance, He said WTI is likely to trade in the $55–$65 range for the time being.

Oil prices remain under pressure as US crude inventories increase. The Energy Information Administration’s (EIA) weekly report showed that crude stockpiles in the US rose by 3.391 million barrels in the week ended January 14, reversing a decline of 3.831 million barrels the previous week. This contrasted with market expectations for a draw of about 2.2 million barrels.

Additionally, Venezuela has begun rolling back Oil production cuts imposed under a US embargo as crude exports resume. Proceeds from the initial Oil shipments, estimated at about $500 million, are being held in bank accounts controlled by the US government, an administration official said.