Oil declines with Gaza peace plan and US inventories in focus

Oil retreated as traders focused on cooling tensions in the Middle East and higher US inventories.Brent fell below $66 a barrel after adding more than 1% on Wednesday, while West Texas Intermediate was near $62. US President Donald Trump said Israel and Hamas had agreed to terms for the release of all hostages still held by the militant group in Gaza in a breakthrough in the push to end the two-year war.

Elsewhere, US nationwide crude stockpiles expanded for a second week, although they remained near seasonal lows, according to official data released on Wednesday. Still, levels at the Cushing, Oklahoma, storage hub declined, as did inventories of refined products.

Crude remains under pressure on expectations for higher supplies, both from the Organization of the Petroleum Exporting Countries and its allies, as well as from the Americas. Beyond the Middle East, geopolitical concerns remain pertinent, with Ukrainian attacks on Russian oil infrastructure affecting flows.Many Wall Street banks and other observers including the International Energy Agency have predicted that the market will swing to a surplus in the coming months. Among them, Goldman Sachs Group Inc. expects Brent to average $56 a barrel next year as global production runs ahead of demand.

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