Core Viewpoint - Oil prices experienced a reversal, declining due to reduced geopolitical risks in the Middle East and an increase in U.S. crude inventories [1] Oil Price Movement - Brent crude fell by 0.5% to $65.89 per barrel [1] - WTI crude decreased by 0.6% to $61.67 per barrel [1] Geopolitical Context - Israel and Hamas reached an agreement on the first phase of President Donald Trump's peace plan for Gaza, which may lower the region's risk premium [1]

Core Insights - Oil prices showed a slight recovery in early Asian trading after two sessions of significant declines, with Brent futures at $66.17 and WTI at $62.50, reflecting a 0.21% increase on the day [1] - The recent price fluctuations are attributed to concerns over a potential OPEC+ production increase and mixed signals from U.S. crude inventory data [2][3] Group 1: Price Movements - Brent and WTI experienced a sharp selloff earlier in the week, with both benchmarks falling over three percent on Monday, marking the steepest daily losses since August 1 [2] - The decline continued on Tuesday, with both benchmarks shedding at least another one and a half percent, indicating market anxiety regarding OPEC+ production decisions [2] Group 2: Inventory Data - The American Petroleum Institute reported a decrease in U.S. crude inventories by 3.67 million barrels for the week ending September 26, suggesting tighter supply conditions [3] - However, gasoline stocks increased by 1.3 million barrels, and distillate inventories rose by 3 million barrels, presenting a mixed supply picture [3] Group 3: OPEC+ Discussions - OPEC+ is reportedly considering a production hike of up to 500,000 barrels per day in November, which is three times the increase seen in October, with Saudi Arabia advocating for a larger increase to enhance its market share [4] - OPEC has expressed unease regarding the reports of a 500,000 bpd increase, labeling them as "misleading," which underscores the uncertainty in the group's decision-making process [4] Group 4: Market Outlook - Traders are closely monitoring the upcoming EIA inventory data, which may confirm the API's reported drawdown and provide short-term support for prices [5] - The near-term direction of oil prices is expected to depend heavily on inventory trends and signals from OPEC+ ahead of its next ministerial meeting [5]

Group 1 - Oil futures are stabilizing after three consecutive sessions of gains, influenced by concerns over Russian supply disruptions and limited market movements ahead of the Federal Reserve's interest-rate decision [1] - The American Petroleum Institute (API) reported a decline of 3.4 million barrels in U.S. crude inventories, while there was a larger-than-expected increase in diesel stocks [2] - The average estimate from a Wall Street Journal survey anticipates that crude stocks will remain unchanged from the previous week [2] Group 2 - WTI crude prices have decreased by 0.3%, currently at $64.35 per barrel, while Brent crude is down 0.2%, priced at $68.31 per barrel [2]