Oil Weakens: Gaza Peace & US Stockpiles Pressure Prices
Oil prices slipped as market participants focused on easing tensions in the Middle East and rising US inventories. Brent fell below $66 per barrel, while WTI approached $62, after rising more than 1% the day before. At 8:17 a.m. Singapore time, Brent for December delivery fell 0.9% to $65.64, and WTI for November delivery fell 1% to $61.90.
From a geopolitical perspective, US President Donald Trump said Israel and Hamas had agreed on terms for the release of all hostages—a breakthrough toward ending the two-year conflict in Gaza. This signal of de-escalation reduced risk premiums, thus dampening the buying incentives for riskier energy assets.
In the US, national crude oil inventories rose for a second week, although they remained near seasonal lows. However, stocks at Cushing, Oklahoma—a key WTI delivery hub—actually declined, as did refined product inventories. This mixed data continues to signal tight supply at the national level. Additional pressure comes from expectations of higher supply from OPEC+ and the Americas, while other geopolitical threats—such as Ukraine's attack on Russian oil infrastructure—remain. Many, including the IEA and Wall Street banks, predict the market will shift into surplus in the coming months. Goldman Sachs even forecasts Brent to average $56/barrel next year as global production outstrips demand.
Key points:
Brent $65.64 (-0.9%) & WTI $61.90 (-1%) at 8:17 a.m. Singapore time.
Gaza peace signal: Claims deal to release all hostages reduces risk premium.
US oil stocks rise for two weeks, but Cushing and refined products fall.
Rising supply expectations (OPEC+ & Americas) prospect of a market surplus.
Goldman Sachs: Brent to average $56/barrel next year.
Source: Newsmaker.id
