Oil fell for a second day following reports Iran is willing to give up nuclear weapons in a deal with the U.S. in return for sanctions relief. West Texas Intermediate fell to $62 a barrel, after dropping 0.8% on Wednesday, when Brent closed near $66. Iran is ready to sign the deal under certain conditions, NBC reported, citing Ali Shamkhani, a top adviser to the OPEC nation's top leader.

Crude fell on Wednesday after government data showed U.S. inventories rose by the most since March, ending a four-day rally that had seen them rise nearly 10%. The gains were driven by a trade truce between China and the U.S. and President Donald Trump's increasingly hostile rhetoric on Iranian supplies. Oil is still down about 13% this year, and U.S. producers have said they expect little change in prices before the end of the year.

The increased flow from Iran would add to the potential for a supply glut later this year after the Organization of the Petroleum Exporting Countries and its allies last month began restoring idled supplies since 2022. The group added just 25,000 barrels a day in April, a fraction of the 138,000 barrels a day scheduled, according to a monthly report released Wednesday. The alliance will consider another output increase at its June 1 meeting. The International Energy Agency, which advises consumer countries and issues forecasts that are more closely watched by oil traders than OPEC, will release its latest estimates of supply and demand on Thursday in Paris. (Newsmaker23)

Source: Bloomberg