WTI price gains ground amid rising threats over supply concerns.
Iran-backed militias are believed to be behind this week’s attacks on oil fields in Iraqi Kurdistan.
US crude inventories fell by 3.9 million barrels last week, significantly exceeding analysts' expectations of a 552,000-barrel draw.
West Texas Intermediate (WTI) Oil price extends its gains for the second successive day, trading around $66.40 per barrel during the Asian hours on Friday. Crude Oil prices receive support from concerns over supply risks.
According to a Reuters report, Iran-backed militias the likely behind the attacks on the oilfields in Iraqi Kurdistan this week; however, no group has claimed responsibility. As a result, Oil production in the semi-autonomous region has been cut by 140,000 to 150,000 barrels per day, more than half of its usual output of around 280,000 bpd, according to two energy officials.
Additionally, US crude inventories dropped by 3.9 million barrels last week, according to the government data, compared with analysts' expectations in a Reuters poll for a 552,000-barrel draw. The International Energy Agency noted last week that rising output has not translated into higher inventories, signaling robust demand.
JPMorgan analysts reported that seasonal travel activity has also supported the market. In the first half of July, global Oil demand averaged 105.2 million barrels per day, up 600,000 bpd year-on-year and in line with projections, per Reuters.
ING analysts on Friday said that near-term Oil fundamentals are likely to remain supportive, with the market expected to stay relatively tight through the current quarter before easing somewhat in the final three months of the year.
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