02:36 PM EDT, 05/02/2024 (MT Newswires) -- West Texas Intermediate crude oil edged down on Thursday, following on .a day-prior 3.6% drop to the lowest since mid-March on an unexpected rise in US inventories that showed weaker than expected demand.

West Texas Intermediate crude oil for June delivery closed down US$0.05 to settle at US$78.95 per barrel. July Brent crude, the global benchmark was last seen down up US$0.15 to US$83.99.

Prices fell to the lowest since March 12 after the Energy Information Administration on Wednesday reported US oil inventories rose by 7.3-million barrels last week, while the consensus estimate called for a small drop in stocks. Also, gasoline inventories rose on weak demand for the fuel.

As well, worries were easing over spreading Middle East violence as ceasefire talks between Israel and Hamas continue in Egypt, with the Guardian reporting a Times of Israel story saying Israel's war cabinet will meet Thursday evening to consider a ceasefire deal in return for the release of hostages held by Hamas.

"Crude oil slumped to a near two-month low pressured by hedge funds long liquidation amid signs of weaker demand and easing tensions in the Middle East. US crude stocks jumped to near a one-year high while implied gasoline demand dropped to a 2020 low," Saxo Bank noted.