WTI remains subdued around $67.50, pares losses as US plan for SPR purchases

• WTI price recovers some of its daily losses as the US plans to purchase Oil for its Strategic Petroleum Reserve.
• The US announced to acquisition of up to 3 million barrels for delivery by May next year.
• Oil prices declined as limited military actions reduced concerns over a potential full-scale conflict in the Middle East.

West Texas Intermediate (WTI) Oil price trims its daily losses, trading near $67.50 per barrel during Tuesday's European session. Crude Oil prices found support from the United States' (US) plan to purchase Oil for its Strategic Petroleum Reserve (SPR).

On Monday, the US announced it is looking to acquire up to 3 million barrels for delivery by May next year. This purchase could exhaust the remaining funds available for SPR replenishment until further funding is approved by Congress, per Reuters.

Oil prices have dropped significantly as limited military actions have eased concerns about a potential full-scale conflict in the Middle East. Iran's Foreign Ministry spokesperson, Esmaeil Baghaei, hinted at the possibility of using "all available tools" in response to recent Israeli strikes on Iranian military targets.

ING Economics analysts noted in a report, "The targeted response from Israel does leave the door open for de-escalation, which would allow market fundamentals to become the primary driver once again," adding that fundamentals are projected to remain bearish through 2025.

The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and partners like Russia, remains set to start easing its production cuts in December, targeting an increase of 180,000 barrels per day (bpd). This adjustment marks the first phase in a series of planned output increases for 2025.