Oil Prices Down Amid Israel Ceasefire, US Stockpile Drawdown
Oil prices fell slightly in Asian trade on Wednesday, extending recent losses after Israel agreed to a two-month deal.
Brent crude futures expiring in January fell 0.2% to $72.70 a barrel, while West Texas Intermediate crude futures fell 0.2% to $68.30 a barrel by 8:47 p.m. ET (01:47 GMT).
Crude losses were also tempered by a Reuters report that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are considering a further delay in plans to increase output. The cartel meets on Dec. 1.
US oil inventories unexpectedly fall – API. Data from the American Petroleum Institute showed on Tuesday that US crude inventories fell by nearly 6 million barrels in the week to Nov. 22. Analysts had expected a 0.25 million-barrel increase, after a 4.75 million-barrel increase last week.
Tuesday’s data boosted some hopes that U.S. fuel demand remains strong, tightening oil supplies in the coming months.
The API data usually follows a similar reading from government inventory data, due on Wednesday.
Oil pressured by Israel-Hezbollah ceasefire, Oil prices have fallen for the past two sessions after media reports initially suggested an Israel-Hezbollah ceasefire was imminent.
U.S. President Joe Biden announced the ceasefire deal on Tuesday. The agreement will see Israeli forces withdraw from Lebanon within 60 days, while Hezbollah will withdraw its forces from the area between the “Blue Line,” the unofficial border between Lebanon and Israel.
Source: Trading Economics
