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WTI stabilizes around $67.50 following a surprise drop in US stockpiles

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  • WTI price receives some support from a drop in US crude oil inventories.
  • API Weekly Crude Oil Stock fell by 0.573 million barrels in the previous week, against an expected 2.3 million-barrel increase.
  • An Axios reporter stated that Israeli Prime Minister Benjamin Netanyahu would discuss a diplomatic resolution to the war in Lebanon.

West Texas Intermediate (WTI) Oil price steadies around $67.40 during Wednesday’s Asian session, following two days of declines. Crude Oil prices found support from a surprise drop in US crude oil inventories.

Data from the American Petroleum Institute (API) on Tuesday showed that US weekly crude Oil stockpiles fell by 0.573 million barrels in the week ending October 25, contrary to expectations of a 2.3 million-barrel increase. The previous week's stock level was 1.643 million barrels. Investors now await the EIA crude oil stockpiles report, due Wednesday.

On Tuesday, Oil prices faced downward pressure after an Axios reporter stated on X that Israeli Prime Minister Benjamin Netanyahu would soon meet with several ministers and military and intelligence leaders to discuss a diplomatic resolution to the war in Lebanon, per Reuters.

However, the US plan to purchase Oil for its Strategic Petroleum Reserve (SPR) provided some support for WTI prices. On Monday, the US announced intentions to acquire up to 3 million barrels for delivery by May next year. This purchase could deplete the remaining funds available for SPR replenishment until further funding is approved by Congress.



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