Oil prices showed little movement during Asian trading on Wednesday after U.S. President Donald Trump indicated progress toward an Israel-Hamas ceasefire, while signs of an unexpected build in U.S. oil inventories dampened market confidence.
Attention was firmly focused on an upcoming meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+), where the cartel is widely expected to approve an increase in oil production. This meeting is scheduled for July 6.
Brent crude futures for September delivery remained steady at $67.09 a barrel, while West Texas Intermediate (WTI) crude futures dipped slightly by 0.1% to $64.06 a barrel as of 21:00 ET (01:00 GMT).
Brent futures recovered some losses after falling to a three-week low on Tuesday. These declines erased gains made during recent tensions involving the Israel-Iran conflict, following the announcement of a U.S.-brokered ceasefire between the two countries.
Oil prices were also unsettled by growing uncertainty over U.S. trade tariffs ahead of a July 9 deadline. On Tuesday, President Trump stated that he did not see a need to extend this deadline.
Trump reported that Israel had agreed to the terms required to finalize a 60-day ceasefire with Hamas, while urging the Palestinian group to accept the deal. According to Trump, his administration held a “long and productive meeting” with Israel, and the proposed 60-day ceasefire would serve as a period to negotiate a permanent truce.
This potential ceasefire points toward a further de-escalation of geopolitical tensions in the Middle East, especially following the recent ceasefire between Israel and Iran, which appears to be holding.
Such developments suggest a reduced risk of supply disruptions from the region, which generally acts as a bearish signal for oil markets.
In the United States, oil inventories unexpectedly increased. Data from the American Petroleum Institute (API) showed a build of 0.68 million barrels in the week ending June 27, contrary to expectations of a 2.26 million barrel drawdown.
This API figure follows five consecutive weeks of significant and larger-than-expected declines in U.S. oil stockpiles, raising questions about the strength of fuel demand during the busy summer travel season.
The API data typically precedes similar government inventory reports, which were due to be released later on Wednesday.
Overall, markets are grappling with doubts about strong U.S. fuel demand amid ongoing uncertainty around President Trump’s trade policies, persistent inflationary pressures, and weakening consumer sentiment.
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