Oil prices fell Thursday, snapping a five-day rally after President Donald Trump said Iran’s crackdown on protesters appeared to be easing, reducing fears of military action and potential supply disruptions. Brent crude futures fell $2.76, or 4.2%, to settle at $63.76 a barrel, while U.S. West Texas Intermediate crude slid $2.83, or 4.6%, to $59.19. Both benchmarks had climbed to multi-month highs earlier in the week.
Trump said reports indicated killings in Iran were slowing and that there were no current plans for large-scale executions, prompting a shift to a wait-and-see stance after earlier intervention threats. Analysts said the remarks deflated the geopolitical risk premium that had built into prices, with Brent having reached $66.82 on Wednesday, its highest level since September.
Additional pressure came from larger-than-expected increases in U.S. crude and gasoline inventories last week, as well as signs that Venezuelan oil production cuts are being reversed and exports are resuming. Analysts also pointed to improved near-term stability in Venezuela following positive talks with U.S. officials, raising expectations for increased supply.
On the demand side, OPEC said oil consumption growth in 2027 is expected to mirror this year’s pace, while its data suggests supply and demand could be nearly balanced in 2026, even as other forecasts continue to warn of a potential surplus.