Oil Prices Decline as Traders Focus on Easing Tensions in the Middle East

SadaNews - Oil prices have declined as traders focus on easing tensions in the Middle East and rising U.S. inventories.

Brent crude fell below $66 a barrel after rising more than 1% on Wednesday, while West Texas Intermediate crude stabilized around $62.

U.S. President Donald Trump stated that Israel and "Hamas" have agreed to the conditions for the release of all hostages still held by the group in Gaza, marking a significant breakthrough in efforts to end the ongoing war that has lasted for two years.

Rising U.S. Inventories and Falling Demand

Official data released on Wednesday showed that U.S. crude oil inventories at the national level rose for the second consecutive week, although they remain close to seasonally low levels. In contrast, stockpiles at the Cushing hub in Oklahoma decreased, as did refined product inventories.

Crude continues to face pressure, amid forecasts of increased supplies from both the "OPEC+" alliance and countries in the Americas.

Despite the easing geopolitical risks in the Middle East, tensions persist in other areas, as Ukrainian attacks targeting Russian oil infrastructure affect supply flows.

Wall Street banks and several institutions, including the "International Energy Agency," expect the market to shift towards a surplus in the coming months. Among these forecasts, "Goldman Sachs" predicted that the average price of Brent crude will reach around $56 a barrel next year, with global production exceeding demand levels.