Oil prices were little changed on Wednesday after two straight days of losses, as the deadlock in Gaza ceasefire talks renewed uncertainty about the security of supplies from the Middle East, offsetting a bigger-than-expected build in US crude inventories.
Brent crude futures were up marginally at $89.49 per barrel, while US West Texas Intermediate (WTI) crude futures rose 8 cents to $85.31.
Prices for both benchmarks remain down around 1.8 percent on the end of last week despite geopolitical tensions in the Middle East triggered by the prospect of Israel’s war in Gaza lasting longer, and drawing in more countries.
“Some of the heat has come out of rally in crude oil in the early part of this week on hopes of a ceasefire in Gaza and higher US inventories,” said Tony Sycamore, a market analyst at IG in Singapore.
Hamas said on Tuesday that an Israeli proposal on a ceasefire in their war in Gaza did not meet the demands of Palestinian militant factions, but it would study the offer further and deliver its response to mediators.
If the conflict continues, it risks the involvement of other countries in the region, particularly Hamas backer Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
Meanwhile, US crude stocks climbed last week by 3.03 million barrels, according to market sources citing American Petroleum Institute figures. Analysts had estimated that stocks would rise by about 2.4 million barrels.
Official US government inventory data is due at 1430 GMT.
