Oil Steadies After Two-Day Decline on Fading Middle East Risk
Oil steadied after a two-day decline on signs of easing Middle East risks, with the market shifting attention to global supply balances and OPEC+’s production outlook.
West Texas Intermediate traded near $67 a barrel after losing more than 6% over the previous two sessions. Brent closed above $71 on Tuesday. Israeli Prime Minister Benjamin Netanyahu held a meeting to achieve a diplomatic deal to end to the fighting in Lebanon, while Israel’s finance minister said the war with Hezbollah will likely be over by the end of December.
The unwinding of a war premium following Israel’s limited retaliatory attacks on Iran on Saturday has put global supply-demand balances back into focus. All eyes are on OPEC+’s plans to gradullay revive production from December, with the market split on whether the alliance will press ahead.
US crude stockpiles, meanwhile, shrank by 600,000 barrels last week, the industry-funded American Petroleum Institute reported, according to a document seen by Bloomberg. Gasoline and distillate inventories also fell.
WTI for December delivery was 0.4% higher at $67.48 a barrel at 7:30 a.m. in Singapore. Brent for December settlement closed 0.4% lower at $71.12 a barrel on Tuesday.
Source : Bloomberg
