Oil prices decline on Gaza peace progress, US inventory build

Published 09/10/2025, 03:02
© Reuters.

Investing.com-- Oil prices slipped in Asian trade on Thursday after U.S. President Donald Trump announced that Israel and Hamas have agreed to the first phase of a Gaza ceasefire deal, while a second straight weekly rise in U.S. crude inventories added pressure on prices.

As of 21:53 ET (01:53 GMT), Brent Oil Futures expiring in December fell 0.6% to $65.86 per barrel, while West Texas Intermediate (WTI) crude futures declined 0.7% to $62.10 per barrel.

Earlier in the week, modest OPEC+ production restraint had offered support, but U.S. stock builds and easing geopolitical risk overwhelmed that lift.

Trump says Israel, Hamas agree to Gaza peace deal

U.S. President Donald Trump said Israel and Hamas had agreed to the first phase of a Gaza peace plan he helped broker, including a temporary halt in fighting, the release of hostages, and phased Israeli troop withdrawals.

Israeli Prime Minister Benjamin Netanyahu said he would convene the government on Thursday to approve the ceasefire agreement intended to secure the return of all hostages.

Last month, Trump unveiled a 20-point plan to halt the two-year war between Israel and Hamas. The developments have raised hopes of a de-escalation in the region, reducing oil’s war-risk premium.

US crude inventories rise for 2nd week; fuel stocks decline - EIA

Data from the U.S. Energy Information Administration released Wednesday showed that crude stockpiles rose by 3.7 million barrels for the week ended Oct. 3, well above analysts’ expectations of a 2.25 million-barrel build.

Gasoline and distillate inventories, however, declined more than expected, while a measure of implied demand rose to 21.99 million barrels per day, the highest since December 2022.

The crude build signals lingering surplus risk in the U.S., but declining fuel stockpiles reflected that demand was resilient, capping losses for the day.

Earlier this week, the EIA revised its U.S. oil production outlook for 2025 to a new record high level of 13.53 million barrels per day, up from 13.44 million previously. It also warned that rising crude inventories could dent prices until the end of the year.

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