Oil prices fell about 1% to their lowest level in a fortnight on Thursday after Iran said talks with world powers on its nuclear programme would resume by the end of November and US crude stocks rose.
Brent crude fell $1.06, or 1.2 per cent, to $83.52 a barrel by 12:31 p.m. ET (1631 GMT), hitting a two-week low of $82.32 early in the session and down 2.1 per cent on Wednesday.
WTI crude oil (US) fell 79 cents, or 0.9 per cent, to $81.86, having previously hit a two-week low of $80.58. The index fell 2.4 per cent on Wednesday after weekly data showed US oil inventories rose more than expected.
Iran's chief nuclear negotiator Ali Bagheri Kani said on Wednesday that the country's talks with six world powers to try to revive the 2015 nuclear deal would resume by the end of November.
The deal could pave the way for the lifting of tough sanctions imposed by former US President Donald Trump on Iran's oil exports in late 2018.
"The market is reacting to these headlines but may be disappointed by how much oil is actually coming back," said Mohamed Lim, a senior analyst at Exness Forex Broker.
US crude inventories rose by 4.3 million barrels last week, the US Department of Energy said on Wednesday, more than double analysts' forecast of 1.9 million barrels.
Analysts at Citi Research said the large increase in stocks was due to a significant jump in net crude imports, while refining remained sluggish.
Nevertheless, gasoline stocks fell by 2 million barrels to their lowest level in almost four years, even as US consumers struggle with rising gasoline prices.
At the WTI delivery hub in Cushing, Oklahoma, crude storage was at its lowest level in three years, with prices on long-term futures contracts indicating supplies will remain low for months to come.
According to market participants, energy information provider Genscape reported that tank levels in Cushing had fallen by 2.772 million in the past week as of October 26.
Outbreaks of coronavirus infection in China and record mortality rates and the threat of quarantine in Russia, as well as an increase in cases in Western Europe, have also affected prices.
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