Oil Prices Edge Lower On Oversupply Worries

(RTTNews) - Oil prices traded lower on Thursday as the glut narrative regained control despite ongoing geopolitical tensions.

Benchmark Brent crude futures dipped 0.6 percent to $64.87 a barrel after the International Energy Agency (IEA) said it expects global oil markets to remain well supplied in 2026. WTI crude futures were down 0.7 percent at $60.20.

The American Petroleum Institute (API) estimated that crude oil inventories in the United States saw a build of 3.04 million barrels in the week ending January 16, after a 5.3M barrels build in the previous week.

Gasoline inventories reportedly showed a build of 6.2M million during the period and Cushing inventories showed a build of 1.2M barrels, while distillate inventories showed a draw of 33K barrels.

The Energy Information Administration is scheduled to release its weekly U.S. petroleum supply report later in the day.

A stronger dollar also kept oil prices under pressure after U.S. President Donald Trump dropped planned tariffs on eight European countries and ruled out using force to take Greenland.