Oil prices have slipped towards $65 as war concerns in the Middle East ease.

According to Reuters, Brent crude futures were down $0.20 to $65.17 a barrel. West Texas Intermediate (WTI) fell $0.25 cents to $59.31 a barrel.

OANDA analyst Craig Erlam said: “Tensions between the US and Iran appear to have eased almost as quickly as they escalated.

“Brent is trading back around $65 and is looking pretty stable at this point. Barring any further escalation in the Middle East, we could see oil prices stabilize around these levels in the near term.”

According to the US Energy Information Administration (EIA), crude oil inventories in the country rose by 1.2 million barrels last week.

Currently, oil prices are below where they were before the US drone strike.

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By GlobalData

In a commodities note, JP Morgan said: “Although markets are rightly pricing in a lower risk of supply-side disruptions in the Middle East, we still think there remains some ongoing risk to output from geopolitical issues in the region.”

Reuters says that oil investors are focusing on areas away from the conflict, for now.

The Organization of the Petroleum Exporting Countries and allies, including Russia, have decided on a further cut in production to deal with ‘build-up of excess supply’.