Crude Inventories Unexpectedly Fall

WTI posts modest gains above $64.50 as United States crude inventories unexpectedly fall

WTI price drifts higher to near $64.55 in Thursday’s early European session.
United States crude inventories dropped by 607,000 barrels in the week ending September 19, the EIA said.
Russia‑Ukraine conflict raises supply risks, supporting the WTI price.

West Texas Intermediate (WTI), the United States crude oil benchmark, is trading around $64.55 during the Asian trading hours on Thursday. The WTI edges higher due to an unexpected fall in United States crude inventories and fears that Ukrainian strikes on Russian energy facilities might threaten supply.

Data released by the United States Energy Information Administration (EIA) on Wednesday revealed that crude oil stockpiles in the United States for the week ending September 19 declined by 607,000 barrels, compared to a fall of 9.285 million barrels in the previous week. Analysts in a Reuters poll had estimated that stocks would increase by 235,000 barrels.

The President of the United States said on Tuesday that NATO nations should shoot down Russian aircraft that violate their airspace, raising the specter of supply disruption and lifting the black gold. In recent weeks, Ukraine has intensified drone attacks against Russian energy facilities, including refineries and export hubs, in an attempt to curb Moscow’s export revenues.

“The focus recently has shifted back to Eastern Europe and the possible introduction of fresh sanctions on Russia,” said PVM Oil Associates analyst Tamas Varga.

Federal Reserve (Fed) Chair Jerome Powell struck a cautious tone on further easing on Tuesday, saying that the United States central bank needs to continue balancing the competing risks of high inflation and a weak job market in its coming policy decisions. Meanwhile, Chicago Fed President Austan Goolsbee warned against a series of rate cuts. The cautious tone of Fed officials could boost the United States Dollar (USD) and weigh on the USD‑denominated commodity price in the near term.