WTI hovers around $74.20 with a positive bias after Israel rejected Hamas ceasefire offer

• WTI price could gain ground as Israel has dismissed Hamas’ offer for a ceasefire.
• EIA Crude Oil stockpiles came in at 5.521 million barrels against the expected 1.895 million barrels.
• The largest US oilfield, the Permian shale basin, is projected to experience its slowest annual growth since 2021.

West Texas Intermediate (WTI) oil price hovers around $74.20 per barrel during the Asian session on Thursday. Crude oil prices are expected to continue their winning streak for the fourth consecutive session. WTI price receives upward support as an obstacle emerges on a ceasefire in the Israel-Gaza conflict.

Israeli Prime Minister Benjamin Netanyahu has dismissed Hamas’ offer for a ceasefire and the release of hostages held in the Gaza Strip. Nonetheless, US Secretary of State Antony Blinken has hinted at the possibility of further negotiations to achieve a resolution. Additionally, a delegation from Hamas, led by senior official Khalil Al-Hayya, is set to journey to Cairo on Thursday for talks with Egypt and Qatar aimed at reaching a ceasefire agreement.

The American Petroleum Institute (API) Weekly Crude Oil Stock exhibited improvement, reporting a figure of 0.674 million barrels, contrasting with the prior decrease of 2.5 million barrels. Despite this, the reported figure fell notably short of the anticipated 2.133 million barrels for the week ending on February 2, providing support for Crude oil prices.

However, the US Energy Information Administration (EIA) reported Crude Oil stockpiles at 5.521 million barrels, surpassing both the expected 1.895 million barrels and the previous figure of 1.234 million barrels. This may have tempered the rise in oil prices.

Additionally, the Permian shale basin, the largest US oilfield spanning Texas and New Mexico, is projected to experience its slowest annual growth since 2021. This development is further bolstering oil prices, as the deceleration in growth will limit overall gains in US production. Coupled with the EIA’s revised forecast for a decline in US oil production growth in 2024.