Global oil prices saw a noticeable uptick on Wednesday, buoyed by a sharper-than-expected drop in U.S. crude inventories, even as market sentiment remained cautious amid ongoing negotiations to end the Russia-Ukraine war.
According to the U.S. Energy Information Administration (EIA), crude stockpiles fell by 6 million barrels last week, marking one of the largest draws this summer and signaling robust domestic consumption.
West Texas Intermediate (WTI) futures for October, the most actively traded contract, rose to nearly $63 per barrel, while September contracts also posted moderate gains.
Brent crude similarly rose, with contracts settling near $67 per barrel.
Latest Oil Prices:
WTI Crude • 63.21 +0.86 +1.38%
Brent Crude • 66.93 +1.14 +1.73%
Murban Crude • 70.10 +1.60 +2.34%
Natural Gas • 2.752 -0.014 -0.51%
Louisiana Light • 65.53 -0.61 -0.92%
Bonny Light • 78.62 -2.30 -2.84%
Opec Basket • 68.64 +0.81 +1.19%
Mars US • 71.56 -1.02 -1.41%
Gasoline • 2.128 +0.039 +1.88%
Despite the upward move, analysts caution that broader market concerns remain.
“This is a supportive development for prices, but it's not enough to convince bearish investors entrenched in the market,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group.
Interestingly, Cushing, Oklahoma, the key delivery point for WTI, saw crude inventories rise for the seventh consecutive week, reaching 23.5 million barrels. The build came despite earlier forecasts by the American Petroleum Institute (API) predicting a decline.
The increase is attributed to a surge in supply from the Permian Basin, underscoring the complexity of U.S. oil flows and regional storage dynamics.
Investors are also closely monitoring diplomatic efforts to broker a ceasefire in the Russia-Ukraine war, with the U.S. and NATO officials holding high-level security talks this week. U.S. President Donald Trump is reportedly playing a direct role in mediating between the two sides.
Any breakthrough could ease restrictions on Russian oil exports, which have been significantly curtailed by Western sanctions, though Moscow has continued shipping crude, particularly to India.
A senior NATO official stated Wednesday that the alliance is “actively working on security guarantees for Ukraine” as part of a broader peace framework.
In a related development, U.S. Treasury Secretary Scott Besant criticized India’s continued purchase of Russian crude, claiming that “some of the wealthiest families in India have profited disproportionately” from the wartime discounts.
Besant hinted at upcoming tariff hikes on Indian exports, potentially escalating trade tensions with the South Asian giant.
Despite this week’s gains, the International Energy Agency (IEA) maintains a bearish outlook for the latter half of 2025, citing:
A likely supply glut as OPEC+ ramps up production
Weakening demand due to shifting trade dynamics under Trump’s tariff-heavy policies
Crude futures have fallen over 10% year-to-date, reflecting uncertainty around global demand recovery and future geopolitical risks.
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