Oil prices steady on shrinking US crude inventories

Oil prices stabilised on Wednesday on industry data showing a surprise drop in U.S. crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East.

Brent crude futures gained 21 cents, or 0.3 per cent, to $71.33 a barrel by 0002 GMT. U.S. West Texas Intermediate crude futures rose 22 cents, or 0.3 per cent, to $67.43 per barrel.

U.S. crude oil and fuel stocks fell last week, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks dipped by 573,000 barrels in the week ended Oct. 25, the sources said on condition of anonymity. Gasoline inventories lost 282,000 barrels, and distillate stocks fell by 1.46 million barrels, the sources said.

Nine analysts polled by Reuters had expected a 2.2 million-barrel rise in crude inventories.

Official U.S. government data is scheduled to be released later on Wednesday.

The API report helped turn the tide on prices following a more than 6 per cent drop in the combined previous two sessions.

Prices fell on Tuesday when an Axios reporter said on X that Israeli Prime Minister Benjamin Netanyahu would hold an imminent meeting with several ministers, the heads of the military and intelligence community about talks on a diplomatic solution to the war in Lebanon.

On Monday, prices lost about 6 per cent after Israel's retaliatory strike on Iran over the weekend missed Tehran's oil infrastructure.