Oil steady as investors watch Iran-Israel ceasefire, demand signals

LONDON: Oil prices were steady on Thursday after erasing earlier gains as investors remained cautious about the Iran-Israel ceasefire while also shifting focus to market fundamentals.

Brent crude futures fell 11 sen, or 0.2 per cent, to US$67.57 a barrel by 0821 GMT. US West Texas Intermediate (WTI) crude fell 8 sen, or 0.1 per cent, to US$64.84 a barrel.

Both benchmarks climbed nearly 1 per cent on Wednesday, recovering from early-week losses after data showed resilient US demand.

Investors will shift their focus back to macroeconomics and oil balances while also watching the Israel-Iran truce, said PVM analyst Tamas Varga.

Oil prices likely followed equity markets lower this morning, UBS analyst Giovanni Staunovo said.

“US government data showed the US driving season is in full swing after a slow start,” ANZ analysts said in a note.

US crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts’ expectations in a Reuters poll for a 797,000-barrel draw.

Gasoline stocks unexpectedly fell by 2.1 million barrels, compared with forecasts for a 381,000-barrel build as gasoline supplied, a proxy for demand, rose to its highest level since December 2021.

On Saturday, Igor Sechin, the head of Russia’s largest oil producer Rosneft, said OPEC+, which groups together the Organization of the Petroleum Exporting Countries and allies including Russia, could bring forward its output hikes by around a year from an initial plan.

Meanwhile, US President Donald Trump hailed the swift end to war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.

Trump also said on Wednesday that the US has not given up its maximum pressure on Iran – including restrictions on sales of Iranian oil – but signalled a potential easing in enforcement to help the country rebuild.

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