Oil Prices Dip on Gaza Ceasefire Progress and Rising U.S. Crude Inventories
Oil prices edged lower during Asian trading hours on Thursday after U.S. President Donald Trump announced that Israel and Hamas had agreed to the first phase of a Gaza ceasefire deal. The move eased geopolitical tensions in the Middle East, while a second consecutive weekly increase in U.S. crude inventories added further pressure on the market.
As of 21:53 ET (01:53 GMT), Brent crude futures for December delivery fell 0.6% to $65.86 per barrel, while West Texas Intermediate (WTI) futures declined 0.7% to $62.10 per barrel.
Earlier in the week, modest OPEC+ production limits provided some support for oil prices. However, that boost was outweighed by a rise in U.S. stockpiles and easing geopolitical risks following the ceasefire announcement.
Trump Confirms Gaza Peace Framework
President Donald Trump stated that Israel and Hamas had agreed to the first phase of a peace plan he helped broker, which includes a temporary ceasefire, the release of hostages, and phased Israeli troop withdrawals.
Israeli Prime Minister Benjamin Netanyahu confirmed that his government would meet on Thursday to approve the ceasefire agreement, aimed at ensuring the safe return of all hostages.
Trump first introduced a 20-point plan last month designed to end the two-year conflict between Israel and Hamas. The breakthrough raised optimism for regional de-escalation, easing the war-risk premium that had been supporting oil prices.
U.S. Crude Stockpiles Rise for Second Straight Week
According to data from the U.S. Energy Information Administration (EIA) released Wednesday, crude inventories rose by 3.7 million barrels for the week ending October 3, surpassing analyst expectations of a 2.25 million-barrel build.
At the same time, gasoline and distillate inventories declined more than anticipated, while a key measure of implied demand climbed to 21.99 million barrels per day — its highest level since December 2022.
While the increase in crude stockpiles signals a potential supply surplus risk, strong demand for refined fuels helped limit losses in oil prices.
Earlier in the week, the EIA also revised its 2025 U.S. oil production forecast to a record 13.53 million barrels per day, up from 13.44 million, and warned that rising inventories could weigh on prices through year-end.
