(Bloomberg) -- Oil fell as a US industry group signaled a modest rise in nationwide crude inventories, and the Biden administration renewed efforts to secure a cease-fire in the Middle East.

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Brent dropped toward $75 a barrel after gaining more than 4% over the previous two days, while West Texas Intermediate was near $71. The American Petroleum Institute estimated stockpiles rose by 1.6 million barrels last week, according to people familiar with the figures. Official data come later Wednesday.

In the Middle East, US Secretary of State Antony Blinken and Israeli Prime Minister Benjamin Netanyahu agreed the recent killing of Hamas leader Yahya Sinwar opened new possibilities for ending the conflict in Gaza. Still, traders are waiting to see how Israel retaliates against Iran for a missile strike earlier this month.

Oil has had a roller-coaster ride in October, boosting volatility, with hostilities in the Middle East raising the specter of supply disruptions in a region that accounts for about a third of world output. In Asia, top importer China has rolled out a series of stimulus measures to combat an economic slowdown, potentially aiding energy demand, but there are doubts about their effectiveness.

“As concerns about Iran oil supply have eased, market focus is shifting back to the risks of oversupply in 2025,” Goldman Sachs analysts including Yulia Zhestkova Grigsby wrote in a note. “Downside price risks from high spare capacity and potentially broader trade tariffs outweigh upside price risk from geopolitical supply disruptions.”

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--With assistance from Sarah Chen.

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