Oil prices fell after Saudi Arabia aimed to “do everything in its power” to prevent recent escalation of tension between Iran and the United States, state media reported on Wednesday.
US West Texas Intermediate crude oil futures were down 0.9% at $62.56 a barrel. UK Brent crude oil futures dropped 0.6% to $71.77.
Saudi Arabia “will do everything in its power to prevent any war and its hand is always extended to peace,” a cabinet statement said, adding the government was committed “to achieving balance in the (oil) market and working toward its stability on a sustainable basis.”
Earlier, Donald Trump threatened Iran in a tweet “If Iran wants to fight, that will be the official end of Iran. Never threaten the United States again,” Trump said in a tweet on Sunday.
The American Petroleum Institute said late on Tuesday that U.S. crude stockpiles rose unexpectedly last week, by 2.4 million barrels, compared with analysts’ expectations for a decrease of 599,000 barrels.
Official data from the U.S Energy Information Administration’s oil stockpiles report is due later on Wednesday.