Khaberni - Oil prices slightly dropped on Thursday, after significant gains recorded in the previous session amid stalled peace talks between Iran and the United States, and at a time when both countries continued to impose restrictions on the flow of trade through the Strait of Hormuz.
Brent crude futures fell 15 cents to $101.76 a barrel after surpassing $100 for the first time in over two weeks at Wednesday's settlement. West Texas Intermediate futures dropped 14 cents to $92.82 a barrel.
The benchmark crudes finished Wednesday's trading up more than three dollars, following greater-than-expected declines in U.S. gasoline and distillate inventories, and no progress in the peace talks.
While U.S. President Donald Trump extended the ceasefire between the countries at the request of Pakistani mediators, Iran and the United States still impose restrictions on ship passage through the Strait of Hormuz.
The strait, which accounted for about 20% of the global daily supplies of oil and liquefied natural gas, saw hostilities begin at the end of February with American and Israeli attacks on Iran.
Iran detained two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway.
Trump also maintained the blockade imposed by the U.S. Navy on Iranian trade through the sea, and the head of Iran's Parliament and chief negotiator Mohammad Baqer Qalibaf said that a full ceasefire would be meaningless unless the blockade was lifted.
Sources in the shipping and security sectors reported that the U.S. military intercepted at least three carriers flying the Iranian flag in Asian waters, redirecting them away from locations near India, Malaysia, and Sri Lanka.
Total exports of crude oil and petroleum products from the United States increased by 137,000 barrels per day to a record level of 12.88 million barrels per day, as Asian and European countries purchased supplies following disruptions linked to the war with Iran.
The U.S. Energy Information Administration said on Wednesday that U.S. crude inventories had risen while gasoline and distillate inventories had decreased.
Crude stocks increased by 1.9 million barrels compared to forecasts of a decline of 1.2 million barrels in a Reuters poll.
Gasoline inventories decreased by 4.6 million barrels, while analysts expected a draw of 1.5 million barrels. Distillate stockpiles dropped 3.4 million barrels against forecasts of a 2.5 million barrel decrease.
