Oil prices climbed for a second straight day on Wednesday after an industry report showed U.S. crude inventories declined last week. The data added to growing concerns about tightening global supplies.
Brent crude futures rose 19 cents, or 0.3%, to $67.82 a barrel by 0400 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 21 cents, also 0.3%, to $63.62. Both benchmarks had already advanced by more than $1 a barrel on Tuesday. That rally followed the stalled deal to restart exports from Iraq’s Kurdistan region. Pipeline shipments to Turkey remain halted, as key producers demand debt repayment guarantees.
The proposed deal between Iraq’s federal and Kurdish regional governments and oil companies would resume around 230,000 barrels per day of exports. However, pipeline flows have been suspended since March 2023.
“Prices are expected to stay supported but range-bound in the near term,” said Emril Jamil, senior oil analyst at LSEG. He added that supply disruptions from Russia provide price support, while uncertainty over U.S. Federal Reserve interest rate policy caps further gains.
According to market sources citing American Petroleum Institute (API) figures, U.S. crude and gasoline stocks both fell last week, while distillate inventories rose. Crude stocks dropped by 3.82 million barrels, gasoline inventories fell by 1.05 million barrels, and distillates rose by 518,000 barrels.
Official U.S. government energy data, due Wednesday, is expected to show an increase in both crude and gasoline stockpiles, alongside a likely drop in distillates.
Meanwhile, signs of tighter supply continue to emerge. Reuters reported that Chevron will be able to export only about half of the 240,000 barrels per day of crude it produces in partnership with Venezuelan firms. Although the company was authorized to operate in Venezuela in July, new restrictions mean less of the country’s heavy, high-sulfur crude will reach the U.S.
