West Texas Intermediate (WTI), the US crude oil benchmark, traded around $61.90 during Asian hours on Thursday, snapping a three-day losing streak as geopolitical risks and renewed sanctions threats against Russia lifted prices.
Geopolitical tensions support oil prices
Oil found support after reports that the US will provide Ukraine with intelligence to enable long-range strikes on Russian energy infrastructure. The Wall Street Journal noted that President Donald Trump approved the move, with US officials encouraging NATO allies to follow suit. At the same time, G7 finance ministers pledged on Wednesday to tighten restrictions on Russian crude, targeting buyers expanding imports as well as entities assisting in sanctions evasion.
These developments added to concerns over tighter supply, providing upward momentum for WTI.
OPEC+ Supply outlook and US inventories weigh on gains
Despite the geopolitical tailwinds, WTI’s upside may be capped by expectations of higher OPEC+ output. Sources familiar with the matter said the group plans to increase production in November, tripling the October hike as Saudi Arabia looks to recapture market share.
Additionally, US inventory data added pressure to crude prices. The Energy Information Administration (EIA) reported that crude stockpiles rose by 1.792 million barrels for the week ending September 26, compared to forecasts of a 1.5 million barrel build. The prior week saw a drawdown of 607,000 barrels, highlighting shifting supply dynamics in the world’s largest oil consumer.
