WTI posts modest gains around $79.00 on US crude stock draw

• WTI price edges higher to $78.95 on Thursday. 
• US crude stocks fell 1.4 million barrels last week, according to the EIA. 
• The hopes of a ceasefire in Gaza have weighed on WTI prices in recent trading sessions. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $78.95 on Thursday. The black gold recovers losses after a surprise crude stock draw in the United States.  

The Energy Information Administration (EIA) reported on Wednesday that crude inventories for the week ending May 3 declined by 1.4 million barrels to 459.5 million barrels from 7.3 million barrels built in the previous week. The market consensus estimated that stocks would decrease by 1.4 million barrels. A decline in oil inventories might lift the WTI prices as it’s typically a sign that demand is increasing. 

The United States expects that discussions on a Gaza ceasefire will be able to close the gap between Israel and Hamas. The US Central Intelligence Agency Director William Burns visited Israel on Wednesday and spoke with Israeli Prime Minister Benjamin Netanyahu, per Reuters. The easing geopolitical tensions in the Middle East might weigh on the WTI prices. 

Apart from this, the hawkish remarks from the US Federal Reserve (Fed) officials to hold the rates higher for longer boost the Greenback broadly and might cap the upside of the USD-denominated oil. Boston Fed president Susan Collins said on Wednesday that it will take longer “than previously thought” to bring inflation down. 

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, will meet on June 1 to discuss its production policy. Nonetheless, Russian Deputy Prime Minister Alexander Novak stated Tuesday that there is currently no talk among OPEC+ about increasing oil supply.