Crude prices ease as geopolitical tensions persist and US stockpiles rise unexpectedly, offsetting supply concerns.
Oil prices retreated near $89 as reports of an Iran-UAE asset transfer eased supply disruption fears. A surprise build in US crude inventories added downward pressure, countering ongoing geopolitical risks in the Middle East.
Earlier, prices had been supported by tensions in the Strait of Hormuz and expectations of tight global supplies. Analysts noted that while the stalemate between Iran and the US remains unresolved, market focus has shifted to inventory data and demand signals.
The drop follows a volatile session where equities in Asia rallied on chip sector strength and earnings optimism, diverting attention from energy markets.