WTI edges higher above $61.50 as US crude oil inventories rise

• WTI price attracts some buyers to near $61.70 in Thursday's early European session. 
• US crude inventories rose by 3.715 million barrels last week, the EIA said. 
• Israel and Hamas reached the first phase of an agreement to end the war in Gaza. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.70 during the Asian trading hours on Thursday. The WTI gains traction amid a larger-than-expected crude inventory build. However, easing geopolitical tensions in the Middle East might cap its upside. Traders brace for the speech by Federal Reserve (Fed) Chair Jerome Powell later on Thursday for fresh impetus. 

Data released by the US Energy Information Administration (EIA) on Wednesday showed that crude oil stockpiles in the US for the week ending October 3 climbed by 3.715 million barrels compared to an increase of 1.792 million barrels in the previous week. Analysts estimated that stocks would rise by 2.25 million barrels. Meanwhile, EIA noted that total weekly petroleum products supplied, a proxy for US oil consumption, climbed last week to 21.990 million bps, the most since December 2022.

"The demand numbers are pretty strong, and that should keep the market supported," said Phil Flynn, a senior analyst at Price Futures Group.

On the other hand, geopolitical tensions in the Middle East eased. US President Donald Trump announced late Wednesday that Israel and Hamas have both signed off on the first phase of peace plan, per the BBC. Israeli Prime Minister Benjamin Netanyahu stated that he would convene the government on Thursday to approve the ceasefire deal. These developments could reduce the war-related risk premium and prompt investor sell-offs.

Earlier this week, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to raise its output targets for November by 137,000 bps on growing concerns about a looming glut in the oil market.