Oil prices fell after a report from a US industry group indicated a slight increase in US crude inventories, while the Biden administration renewed efforts to reach a ceasefire in the Middle East, which could ease tensions.
Brent crude fell below $76 a barrel after gaining more than 4% over two days, while West Texas Intermediate crude fell towards $71. The American Petroleum Institute estimated that inventories rose by 1.6 million barrels last week, with official data due later on Wednesday.
In the Middle East, US Secretary of State Antony Blinken and Israeli Prime Minister Benjamin Netanyahu agreed that the recent killing of Hamas leader Yahya Sinwar opened new prospects for ending the conflict in Gaza. However, traders are waiting to see how Israel responds to Iran after a missile strike earlier this month.
Oil prices have been volatile in October, adding to the uncertainty as tensions in the Middle East have raised concerns about supply disruptions in a region that accounts for about a third of global production. In Asia, China, the largest oil importer, has taken a series of stimulus measures to combat the economic slowdown, which may support energy demand, but there are doubts about the effectiveness of these measures.
