UNITED STATES (OBSERVATORY) – Oil prices have fallen from their highest levels since late 2014 on abundant supplies, although fears of a military escalation in Syria and trade tensions between China and the United States are supporting prices.
By 0902 GMT, Brent crude futures were down 36 cents from the last settlement to $ 71.70 a barrel.
WTI futures fell 20 cents to $ 66.62 a barrel.
Brent crude and West Texas Intermediate crude hit their highest levels since late 2014 at $ 73.09 and $ 67.45 a barrel on Wednesday, after Saudi Arabia said it had intercepted rockets over Riyadh and US President Donald Trump warned Russia of imminent military action in Syria.
Analysts say the emerging concerns of geopolitical conditions have set aside key factors.
Concerns about a prolonged trade dispute between the United States and China have also kept the market anxious.
Despite market tension, supplies remain plentiful and analysts said this would eventually overshadow prices.
US oil inventories rose 3.3 million barrels to 428.64 million barrels.
At the same time, the US crude oil production last week reached a new record level of 10.53 million barrels per day.
The United States now produces crude at rates that surpass Saudi Arabia, the world’s largest oil exporter, and only surpassed by Russia, which produces about 11 million bpd.