09:08 AM EDT, 04/18/2024 (MT Newswires) -- Oil prices fell for a fourth-straight session early on Thursday as the geopolitical risk premium continues to ease while rising US inventories are seen as a signal of weak demand.

West Texas Intermediate crude oil for May delivery was last seen down US$0.34 to US$82.35 per barrel, the lowest since March 27, while June Brent crude, the global benchmark, was down US$0.49 to US$86.80.

The commodity is continuing to shed a risk premium accorded since the start of April, when Israel launched an attack on Iran's embassy in Syria that killed senior military leaders. Iran's response over the weekend, launching hundreds of drones and missile to attack Israel that were mostly shot down, caused minor damage and Israel has so far not retaliated, easing fears of a spreading Middle East war.

A larger than expected 2.7-million barrel rise in US oil inventories reported on Wednesday by the Energy Information Administration added concerns over flagging demand.

"Crude slumped 3% on Wednesday after traders, once again, were forced to dial back a geopolitical risk premium after prices broke key support-now-resistance at USD 88.75 in Brent and USD 84.65 in WTI. The driver being doubts about an immediate response by Israel to Iran's weekend attack, while the trigger was the EIA report showing US crude stocks rising to a ten-month high, raising some doubts about the current level of demand," Saxo Bank noted.

Renewed US sanctions on Venezuela's oil exports offered some price support for oil, as the Biden Administration made good on a promise to end lighter restrictions on the country as the Maduro government continues to suppress opposition ahead of July elections. The country in February exported 0.88-million barrels per day in March, according to a Reuters report.