Oil prices rose on Wednesday as investors assessed the stability of a ceasefire between Iran and Israel, but remained near multi-week lows on the prospect that oil supplies would not be disrupted, Reuters reports, UNN writes.
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Brent crude futures rose 85 cents, or 1.3%, to $67.99 a barrel at 03:41 GMT (06:41 Kyiv time), while US West Texas Intermediate (WTI) crude rose 87 cents, or 1.4%, to $65.24.
On Tuesday, Brent crude settled at its lowest level since June 10, and WTI crude at its lowest level since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.
Prices rose to five-month highs after the US attacked Iran's nuclear facilities last weekend.
"Global energy prices are falling after the ceasefire between Israel and Iran. The base case for our oil strategists remains based on fundamental factors that point to sufficient global oil supplies," JP Morgan analysts said in a client note.
US airstrikes did not destroy Iran's nuclear potential and only pushed it back by a few months, according to a preliminary US intelligence assessment, as a fragile ceasefire brokered by US President Donald Trump between Iran and Israel took effect.
Earlier on Tuesday, both Iran and Israel made it clear that the air war between the two countries was over, at least for now, after Trump publicly reprimanded them for violating the ceasefire.
Removing civilian restrictions after 12 days of war, which the US joined by attacking Iranian uranium enrichment facilities, each of the two countries sought to declare their victory.
"The ceasefire between Israel and Iran is likely to prove fragile. But until both sides show a willingness to attack export-related energy infrastructure and/or disrupt shipping flows through the Strait of Hormuz, we expect bearish fundamentals in the oil market to continue... from here," said David Oxley, chief climate and commodities economist at Capital Economics.
Direct US involvement in the war has made investors worry about the Strait of Hormuz, a narrow waterway between Iran and Oman through which 18 to 19 million barrels of oil and fuel pass per day, accounting for almost a fifth of global consumption.
Investors were awaiting US government data on domestic oil and fuel inventories, which were due to be released on Wednesday.
Industry data showed that US oil inventories fell by 4.23 million barrels in the week ended June 20, market sources said, citing data from the American Petroleum Institute on Tuesday.