ANKARA
Oil prices rose on Wednesday, driven by a stronger demand outlook in the US, the world’s largest oil consumer, while reports of a potential cease-fire between Israel and Hamas continued to put downward pressure on prices.
International benchmark Brent crude rose 0.2%, trading at $79.70 per barrel at 9.53 am local time (0653GMT), up from $79.54 at the close of the previous session.
US benchmark West Texas Intermediate (WTI) climbed 0.26% to $76.91 per barrel compared to its prior session close of $76.70.
The American Petroleum Institute (API) reported a drawdown in US commercial crude oil inventories for the week ending Jan. 10.
API data showed a decline of 2.6 million barrels, although it was still below market expectations of a 3.5 million barrel drop.
The drop in stocks suggests strengthening demand in the US, pushing both benchmarks higher.
The US Energy Information Administration will release official inventory data later on Wednesday.
Talks for a prisoner swap and cease-fire, facilitated by Qatar, Egypt, and the US, continued to weigh on prices.
Israeli Prime Minister Benjamin Netanyahu said Tuesday that a prisoner swap deal with the Palestinian group Hamas could be finalized in a matter of “days or hours.”
Speaking during a meeting with families of Israeli captives being held in Gaza, Netanyahu said he is “ready for a prolonged cease-fire on the condition that all the abductees are returned.”
Netanyahu, who has rejected previous proposals, reiterated that progress depends on Hamas’ response.
Earlier, Hamas said that a Gaza cease-fire and prisoner swap agreement is in “its final stages.”
Meanwhile, uncertainty about the potential impact of policies under the incoming US president, Donald Trump, has made investors more cautious.
Analysts expect today’s inflation data and the US Federal Reserve’s Beige Book report to have an impact on the markets.
