New York (Platts)--23May2012/258 pm EDT/1858 GMT

ICE Brent crude for July fell $3 to $105.41/barrel during Wednesday afternoon US trading, as eurozone worries increase and Iran tensions relax.

The decline in Brent prices comes as bearish US oil inventory data, released Wednesday by the US Energy Information Administration, weighs on crude markets in the US.

NYMEX July crude oil futures settled down $1.95 to $89.90/b at 2:33 pm EDT.

US Energy Information Administration data Wednesday showed US crude stocks rose by 883,000 barrels, to 382.527 million barrels in the week that ended May 18, the ninth consecutive week stocks had increased, while crude stocks at the NYMEX delivery hub at Cushing, Oklahoma, hit a fresh record high of 46.795 million barrels (See story, 1519 GMT).

Ongoing talks in Baghdad over Iran's nuclear ambitions seem to be deflating the geopolitical risk premium in futures prices.

Meanwhile, an EU summit taking place Wednesday has heightened fears of an impending Greek departure from the group, and the possible contagion that may ensue.

Tim Evans, an energy analyst at Citi Futures Perspective, said the oil markets were on the defensive, balancing eurozone worries and an easing of the Iranian situation, in addition to the bearish EIA crude oil stocks data.

--James Bambino, james_bambino@platts.com
--Edited by Robert DiNardo, robert_dinardo@platts.com

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