London: Oil prices experienced a decline on Thursday following an earlier rise attributed to apprehensions over the effects of escalating tariffs on global economic growth and energy demand. These concerns overshadowed the positive sentiment that had emerged from a larger-than-expected drop in U.S. oil inventories.

According to National Iraqi News Agency, Brent crude futures decreased by 7 cents, or 0.1 percent, settling at $70.88 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures fell by 11 cents, or 0.2 percent, to $67.57 per barrel. This decline followed a 2 percent increase in both crudes on Wednesday, spurred by U.S. government data indicating larger-than-anticipated declines in crude oil and fuel inventories.

U.S. government data revealed that crude inventories in the United States increased by 1.4 million barrels last week, which was less than the projected rise of 2 million barrels. U.S. crude oil inventories dropped by 5.7 million barrels, surpassing expectations of a 1.9 million-barrel decrease, with distillate inventories also falling more than expected.

Data from the US Energy Information Administration indicated that crude oil inventories within the US Strategic Petroleum Reserve reached their highest level since 2022. On Wednesday, the Organization of the Petroleum Exporting Countries (OPEC) upheld its forecast for robust growth in global oil demand by 2025, citing support from air and road travel.

OPEC presented data showing a 363,000 barrel per day increase in production from the expanded OPEC+ alliance in February, primarily due to heightened production from Kazakhstan.