Oil prices fell sharply after a three-year high in U.S. crude inventories and mounting uncertainty over U.S.-Iran negotiations.
Brent crude dropped 1.5% to $69.80 a barrel, while WTI fell 1.9% to $64.16 in midday trading.
U.S. crude inventories jumped by 16 million barrels last week, according to Energy Information Administration data, pressuring prices.
Markets are closely watching talks in Geneva between U.S. envoy Steve Witkoff, Jared Kushner, and an Iranian delegation.
Saudi Arabia is reportedly preparing to boost production and exports under a contingency plan if regional supplies are disrupted.
OPEC+ is also considering raising output by 137,000 barrels per day in April ahead of peak summer demand.
Earlier this week, Brent hit its highest level since July 31 amid rising geopolitical tensions in the Middle East.
Analysts say a constructive U.S.-Iran resolution could unwind up to $10 per barrel in risk premium currently embedded in prices.
