During Wednesday’s Asian trading session, oil prices remained largely unchanged as optimism grew over a possible Israel-Hamas ceasefire, following remarks by U.S. President Donald Trump. However, the positive sentiment was tempered by data revealing an unexpected rise in U.S. crude oil inventories, which raised concerns among traders.
Market participants are now looking ahead to the OPEC+ meeting scheduled for July 6, where an increase in oil production is widely anticipated. The outcome of this meeting is expected to influence prices significantly.
As of 21:00 ET, September Brent crude futures held steady at $67.09 per barrel, while West Texas Intermediate (WTI) futures saw a slight decline of 0.1%, trading at $64.06 per barrel.
Brent had earlier dropped to a three-week low on Tuesday, wiping out earlier gains made amid recent tensions in the Israel-Iran conflict after the announcement of a U.S.-brokered ceasefire. This easing of Middle East tensions has contributed to a softer outlook for oil supply disruptions.
Uncertainty around U.S. trade tariffs, with a looming July 9 deadline, also weighed on prices. President Trump stated he does not plan to extend the deadline for tariff negotiations, keeping trade tensions in focus.
Trump also confirmed that Israel has accepted the terms for a 60-day ceasefire with Hamas, urging the Palestinian group to agree to the deal. According to the president, his administration held a “productive” meeting with Israeli officials, viewing the ceasefire period as an opportunity to negotiate a longer-lasting peace.
This recent progress toward reduced conflict in the region signals a lower risk of supply interruptions, a factor that typically exerts downward pressure on oil prices.
In the U.S., crude inventories unexpectedly rose by 680,000 barrels in the week ending June 27, according to the American Petroleum Institute (API). This came as a surprise after five weeks of substantial inventory declines and contradicted analyst forecasts of a drawdown by over 2 million barrels.
The rise in inventories casts doubt on the strength of fuel demand during the busy summer travel season. The official government inventory report, which usually follows the API data, was expected later on Wednesday.
Overall, oil markets remain cautious amid mixed signals from geopolitical developments, trade uncertainties, persistent inflation, and weakening consumer confidence in the U.S. economy.