Oil prices remained stable on Wednesday following yesterday's gains as expectations of China's economic stimulus faded.
By 12:15 pm AEST (2:15 am GMT) Brent crude futures fell 16 cents or 0.2% to $75.01 per barrel, while U.S. West Texas Intermediate (WTI) crude lost 21 cents or 0.3% to $71.35 per barrel.
On Tuesday, both benchmarks rose by about 1.7% following China's most aggressive economic stimulus since the COVID-19 pandemic.
However, declining U.S. crude and fuel inventories provided some support to the oil market as American Petroleum Institute crude oil stockpiles fell by 4.34 million barrels last week.
Gasoline inventories fell by 3.44 million barrels, and distillate stocks dropped by 1.12 million barrels, further stabilising prices after their lowest point since 2021 on September 10.
Meanwhile, escalating conflict in the Middle East, particularly between Iran-backed Hezbollah in Lebanon and Israel, have added upward pressure on oil prices.
Hezbollah confirmed the death of senior commander Ibrahim Qubaisi in Israeli airstrikes, heightening fears of broader conflict in the oil-producing region.
In the U.S., a hurricane initially threatening the Gulf Coast has shifted course towards Florida, reducing concerns over disruptions to oil and gas production in key regions near Texas, Louisiana, and Mississippi.
