Oil prices fall for a third session as a 60-day ceasefire deal eases Middle East tensions, offsetting weaker-than-expected US inventory draws.
West Texas Intermediate crude slid to a one-month low near $86.00, extending a three-day decline. Prices are set for a nearly 15% drop over two weeks as a US-Iran truce extension reduced geopolitical risks, weighing on demand for safe-haven assets like oil and the US Dollar.
US Energy Information Agency data showed crude inventories fell by 3.327 million barrels last week, missing forecasts of a 5 million-barrel drawdown. The decline marks the fifth consecutive weekly drop but remains less than half the 7.864 million-barrel reduction reported the prior week.
Markets reacted cautiously to the truce news, with equity markets rebounding modestly while oil prices remained under pressure. The deal, pending US approval, aims to ease restrictions on sea traffic through the Strait of Hormuz.