By Gina Lee
Investing.com – Oil was down Thursday morning in Asia. The black liquid extended declines after Iran and world powers agreed to resume nuclear talks later in the month, which could lead to the removal of U.S. sanctions on Iranian oil and increase global supplies.
Brent oil futures fell 0.88% to $81.27 by 10:54 PM ET (2:54 AM GMT) and WTI futures slid 1.04% to $80.02.
Both Brent and WTI futures posted their biggest daily percentage declines since early August on Wednesday but remained above the $80 mark. Brent futures closed at their lowest level since Oct. 7, while WTI futures closed at their lowest level since Oct. 13.
Wednesday’s U.S. crude oil supply data from the U.S. Energy Information Administration showed a larger-than-expected build of 3.291 million barrels for the week to Oct. 29. A 2.225-million-barrel draw was predicted in forecasts prepared by Investing.com, while a 4.267-million-barrel build was reported during the previous week.
Crude oil supply data from the American Petroleum Institute the day before showed a build of 3.594 million barrels.
"The fall in oil prices overnight was likely partly due to the rise in U.S. oil stockpiles," Commonwealth Bank commodities analyst Vivek Dhar said in a note.
"The more dominant driver of the decline in oil prices was Iran's announcement that the U.S. and Iran will resume talks on reviving a nuclear accord."
Meanwhile, Iran and six powers will begin talks to revive a 2015 Iran nuclear deal on Nov. 29. Iran has been demanding that the U.S. lift sanctions that have been limiting its oil exports.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, will meet later in the day. The cartel is widely expected to stick to its plan of steady monthly supply increases steady, despite mounting calls for an acceleration.