09.10.202501:12:55UTC+00Oil Falls on Initial Gaza Deal

WTI crude oil futures declined to approximately $62 per barrel on Thursday, reducing recent advances as reports of a preliminary agreement between Israel and Hamas to resolve the Gaza conflict diminished the risk premium. President Trump announced that the initial phase of a peace plan, corroborated by Israeli officials, Hamas, and mediating party Qatar, has the potential to terminate the two-year conflict and facilitate the release of hostages. Nonetheless, clarity on the resolution of more contentious issues between the involved parties remains elusive. Additional downward pressure on oil prices resulted from an unexpectedly large increase in inventories. According to EIA data, U.S. crude stocks rose by 3.7 million barrels last week, surpassing market forecasts of a 2.3 million barrel increase, spurred by elevated production and imports. Conversely, crude stocks at the Cushing, Oklahoma hub experienced a significant drop of 763,000 barrels, marking the largest decline since June, while gasoline and distillate inventories also saw a decrease.