WTI drifts lower below $65.00 after Israel agrees to Iran ceasefire

• WTI price loses ground to near $64.90 in Wednesday's Asian session. 
• Expectations Israel-Iran ceasefire will reduce the risk of oil supply disruptions in the Middle East weigh on the WTI price. 
• US crude oil inventories declined by 4.277 million barrels in the week ended June 20, according to the API. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.90 during the Asian trading hours on Wednesday. The WTI price tumbles to a two-week low near $64.75 after Israel agrees to a ceasefire with Iran after nearly two weeks of conflict.

The WTI price edges lower after news of the ceasefire between Israel and Iran. Investors expect a truce between both countries will reduce the risk of oil supply disruptions in the Middle East. "If the ceasefire is followed as announced, investors might expect the return to normalcy in oil," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

US Crude Oil Inventories saw another sharp draw last week. The American Petroleum Institute (API) weekly report showed crude oil stockpiles in the US for the week ending June 20 declined by 4.277 million barrels, compared to a fall of 10.133 million barrels in the previous week. So far this year, crude oil inventories are up 3.3 million barrels, according to oil price calculations of API data.

Oi traders will closely monitor the developments surrounding the Israel-Iran conflict. Any signs of renewed escalation could raise the fears of oil global supplies, which might boost the WTI price. The weekly crude oil stock from the US Energy Information Administration will be published later on Wednesday.