Oil prices extended gains in Asian trading on Wednesday, lifted by a stalled deal to resume exports from Iraq’s Kurdistan region and a larger-than-expected draw in U.S. crude inventories, while growing geopolitical risks around Russia also supported the market.
As of 21:23 ET (01:23 GMT), Brent Oil Futures expiring in November rose 0.4% to $67.88 per barrel, while West Texas Intermediate (WTI) crude futures also gained 0.4% to $63.68 per barrel.
Both contracts climbed more than 1.5% or by $1 on Tuesday. A deal to restart flows of about 230,000 barrels per day from Kurdistan through Turkey has been delayed after producers refused to resume shipments without guarantees on repayment of arrears.
The setback eased fears of oversupply in the short term, underpinning prices after several sessions of volatility.
U.S. crude stockpiles drop - API
Industry data added to the bullish tone. The American Petroleum Institute said on Tuesday that U.S. crude stocks fell by 3.82 million barrels in the week ended Sept. 19. Analysts had expected a slightly smaller draw of 3.4 million barrels.
Gasoline inventories also declined, though distillates rose modestly. The data pointed to resilient demand and a tighter near-term balance in the world’s largest oil consumer.
However, oversupply worries remain, with the International Energy Agency forecasting that world oil supply would rise more rapidly this year and a surplus could expand in 2026 as OPEC+ members increase output and supply from outside the group grows.
Russia supply risks grow amid Trump pressure
Geopolitical tensions further supported sentiment around tighter supply risks. U.S. President Donald Trump told the United Nations General Assembly that NATO nations should shoot down Russian aircraft if they violate alliance airspace and said Ukraine could reclaim all of its territory from Russia.
The remarks marked a sharp rhetorical shift in Washington’s stance and were seen as raising the risk of further sanctions on Russian energy exports, which could squeeze global supply.
Meanwhile, a Bloomberg report stated that Russian authorities were considering restrictions on diesel exports by some companies following a spate of Ukrainian drone attacks on energy facilities.
Source :
https://www.investing.com/news/commodities-news/oil-prices-extend-gains-amid-easing-oversupply-worries-us-crude-stocks-decline-4252341
