Oil prices retreated as traders focused on a potential rise in U.S. crude inventories and the Biden administration’s diplomatic efforts to broker a cease-fire in the Middle East.
Brent crude edged closer to $75 per barrel after rallying over 4% in the previous two sessions. West Texas Intermediate (WTI) hovered near $71. According to sources familiar with the data, the American Petroleum Institute (API) reported a 1.6 million barrel increase in U.S. stockpiles last week. Official figures are due later on Wednesday.
On the geopolitical front, U.S. Secretary of State Antony Blinken and Israeli Prime Minister Benjamin Netanyahu discussed how the recent killing of Hamas leader Yahya Sinwar could shape peace efforts in Gaza. However, uncertainty remains as traders await Israel’s response to an earlier missile strike allegedly tied to Iran.
Oil markets have experienced heightened volatility throughout October, driven by fears of supply disruptions from the Middle East, a region responsible for roughly a third of the world’s oil production. While China, the world’s largest importer, has introduced stimulus measures to bolster its slowing economy, doubts persist about their ability to significantly boost energy demand.
