Oil prices were mostly unchanged on Wednesday, with Brent settling 2 cents higher at $72.83 a barrel and U.S. WTI down 5 cents at $68.72. A larger-than-expected 3.3 million barrel build in U.S. gasoline inventories weighed on prices, despite crude stocks falling by 1.8 million barrels, a sharper decline than anticipated.
The ceasefire between Israel and Hezbollah, effective Wednesday, reduced oil’s geopolitical risk premium, though its long-term durability remains uncertain. Meanwhile, OPEC+ is considering delaying a planned January production increase due to weak demand and rising output from non-OPEC+ producers, with a decision expected at its December 1 meeting. Concerns about slower U.S. interest rate cuts further pressured prices, as elevated borrowing costs could dampen oil demand.