WTI remains subdued near $69.50, downside seems limited due to increased US Oil demand

• WTI prices could see an uptick due to rising fuel demand and declining stockpiles in the United States.
• EIA Crude Oil Stocks Change declined by 4.471 million barrels in the previous week, against a 1.2 million-barrel decline.
• Oil prices face downward pressure amid skepticism about the effectiveness of China's stimulus measures to sufficiently boost its economy.

West Texas Intermediate (WTI) Oil prices remain subdued, trading near $69.60 per barrel during Asian trading hours on Thursday. However, crude Oil prices could rise due to increased fuel demand and shrinking stockpiles in the United States, the world's largest Oil consumer. The US Energy Information Administration (EIA) reported a significant drop in US crude Oil inventories, with stockpiles falling by 4.471 million barrels in the week ending September 20, surpassing the anticipated 1.2 million-barrel decline.

Crude Oil prices fell on Wednesday as concerns over potential supply disruptions in Libya diminished. Delegates from Libya's divided east and west reached an agreement on the process for appointing a central bank governor, a key step toward resolving the ongoing conflict over control of the country's Oil revenue, which has previously disrupted exports, according to Reuters.

The prices of Oil face challenges as traders re-evaluate the effectiveness of China's stimulus plans to significantly boost the economy of the world's largest Oil importer. On Tuesday, People's Bank of China (PBOC) Governor Pan Gongsheng announced to reduction of the Reserve Requirement Ratio (RRR) by 50 basis points (bps). Gongsheng also noted that the central bank would lower the seven-day repo rate from 1.7% to 1.5%, and reduce the down payment for second homes from 25% to 15%. Bloomberg and Reuters reported that China is considering injecting USD 142 billion more of capital into top banks.

The decline in crude Oil prices may be limited by escalating tensions in the Middle East. An Israeli airstrike on Beirut killed a senior Hezbollah commander on Tuesday, raising fears of a broader conflict as cross-border rocket attacks intensified. Meanwhile, the United States, France, and several allies have called for an immediate 21-day ceasefire along the Israel-Lebanon border "Blue Line" and expressed support for a ceasefire in Gaza, following intense discussions at the United Nations on Wednesday.