Oil prices steady amid signs of rising US inventories; Gaza Ceasefire By Investing.com

Investing.com– Oil prices were little moved in Asian trade on Wednesday, seeing little relief from recent losses, as industry data signaled an unexpected rise in U.S. inventories, while progress toward a ceasefire in Israel- Hamas remained in focus.

Crude oil prices sustained steep losses in recent sessions on lingering concerns about slowing demand in top importer China, while the prospect of easing tensions in the Middle East saw traders place a lower risk premium on oil.

which expires in October, settled at $77.21 a barrel, while it was steady at $76.61 a barrel by 20:48 ET (00:48 GMT).

Caution ahead of an address by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium later this week also kept oil markets on edge.

US inventories see small build API

US data showed US inventories rose by nearly 0.4 million barrels in the week to August 16, against expectations for a 2.8mb draw.

API data typically heralds a similar reading from , due later on Wednesday, and prompted some concerns that U.S. demand is cooling as the busy summer travel season has ended.

Data from the Energy Information Administration showed U.S. inventories rose for the first time in nine weeks earlier in August, with smaller draws in gasoline and distillate inventories adding to the idea that demand is cooling.

U.S. oil production recently hit record levels, raising concerns about oversupplied oil markets.

Israel agrees to “reduce” ceasefire, Hamas reluctant

Media reports earlier this week indicated that Israel had agreed to a preliminary US-brokered cease-fire agreement, although the details of the agreement were still to be negotiated.

But reports have indicated that Hamas has criticized the new deal and that it reflects a US bias towards Israel. Hamas also issued a statement criticizing US President Joe Biden.

Hamas’ comments came as Israel continued its offensive against Gaza, further complicating the prospect of a ceasefire.

The Israel-Hamas war has been a key point of contention for oil markets amid lingering concerns that a spillover conflict could disrupt oil supplies in the Middle East.

US Secretary of State Antony Blinken was seen shuttling between Egypt, Qatar and Israel earlier this week to negotiate a ceasefire. But so far no agreement seemed to be reached.