Oil prices were little changed on Thursday as traders balanced optimism over a potential Gaza ceasefire deal against renewed concerns about stalled peace talks in Ukraine, which could prolong sanctions on Russian exports.
As of 6:29 a.m. Beijing time, Brent crude rose just 2 cents to $66.27 per barrel, while WTI slipped 1 cent to $62.54, holding near one-week highs.
U.S. President Donald Trump announced a ceasefire and hostage release agreement had been reached in Gaza, which Israeli Prime Minister Benjamin Netanyahu is expected to approve later Thursday. However, analysts cautioned that previous negotiation efforts have repeatedly failed, urging traders to remain cautious.
While a truce could ease regional supply risks, analysts said it is unlikely to immediately affect output levels, given that OPEC+ is still struggling to meet its latest production targets.
Meanwhile, stalemated Ukraine peace efforts kept geopolitical risk premiums intact. Rystad Energy warned that prolonged conflict will maintain high uncertainty over Russian output.
Data from the EIA showed that U.S. oil consumption rose to its highest level since December 2022, while a JP Morgan report estimated global demand at 105.9 million barrels per day in early October—below forecasts but above last year’s levels.
Overall, the market remains range-bound, balancing optimism about de-escalation in Gaza with lingering geopolitical risks in Eastern Europe.