Oil prices extended gains on supply fears, but US stock build limits upside
Crude oil extended its winning streak for a third straight session on Wednesday, climbing more than $1 a barrel as geopolitical tensions renewed supply concerns.
Crude oil extended its winning streak for a third straight session on Wednesday, climbing more than $1 a barrel as geopolitical tensions renewed supply concerns. The rally, however, lost steam after official data revealed a surprise build in US inventories.
Brent settled $1.10 higher, or 1.7%, at $67.49 a barrel.
WTI added $1.04, or 1.7%, to close at $63.67.
Prices spiked after Poland reported downing drones in its airspace, prompting Washington to question Moscow’s actions. Traders rushed to cover short positions amid speculation the US could tighten sanctions on Russia’s energy trade.
According to market sources, Washington has urged the European Union to impose 100% tariffs on China and India — two of Russia’s biggest crude buyers — in a bid to pressure the Kremlin into peace talks with Ukraine.
Meanwhile, the latest data from the Energy Information Administration (EIA) showed a 3.9 million-barrel increase in US commercial crude inventories, against expectations for 1 million barrels draw. Gasoline stocks also rose by 1.5 million barrels, with analysts warning demand could weaken further as the summer driving season winds down.
Written: Farid Muzaffar