Oil slips on geopolitical tensions, demand developments

Oil prices were marginally lower on Thursday, despite a drop in US crude inventories, amid developments related to geopolitical tensions.

The international benchmark Brent crude was trading down 0.37% at $91.21 per barrel, at 9.00 am Makkah time.

WTI crude was lower by 0.25% at $89.44 a barrel.

US crude inventories fell 4.8 million barrels in the week to Feb. 4, dropping to 410.4 million barrels - their lowest for commercial inventories since October 2018, according to the EIA report.

Oil prices were subdued this week, after seven consecutive weeks of gains that pushed the crude prices to their highest levels since 2014 as a series of supply disruptions and stronger-than-expected demand offered support. Additionally, the global economy continued its recovery from the coronavirus pandemic.

Meanwhile, South Korea announced its readiness to pump its strategic stockpile of crude if the escalating conflict between Russia and Ukraine disrupts supplies, Bloomberg reported.