2021.10.2810:13:00UTC+00Oil Extends Losses On US Inventory Build

Oil prices fell more than 1 percent on Thursday to extend losses from the previous session after official figures showed a jump in U.S. inventories of crude and Iran said talks with world powers to revive a 2015 nuclear deal would resume before the end of next month.

Brent crude futures for January delivery fell 93 cents, or 1.1 percent, to $82.94 per barrel, while U.S. crude futures for December settlement were down $1.24, or 1.5 percent, at $81.42.

Data released by U.S. Energy Information Administration (EIA) on Wednesday showed crude oil inventories increased by about 4.3 million barrels last week, more than twice the expected increase of 1.9 million barrels.

Gasoline stocks fell by nearly 2 million barrels last week, while distillate inventories dropped by about 432,000 barrels.

Meanwhile, media reports suggest that Iran will return to broader nuclear talks before the end of November, setting the stage for a lifting of sanctions and the return of Iranian oil.

Iran has agreed to resume talks with six world powers aimed at reviving the Iran nuclear agreement by the end of November, Iran's top nuclear negotiator Ali Bagheri Kani tweeted on Wednesday, after his meeting with his EU counterpart Enrique Mora on the same day.

Bagheri Kani added that an exact date would be announced next week.

If talks turn out to be successful, about 1.3 million b/d of Iranian oil would return to global export markets, according to some analyst estimates.