WTI price gains ground amid rising supply concerns following the Houthis' attack in the Red Sea.
The implementation of the US tariffs on major trading partners contributes support for the Oil demand.
OPEC+ is set to increase oil output by approximately 550,000 barrels per day in September.
West Texas Intermediate (WTI) Oil price extends its winning streak for the third successive session, trading around $67.60 per barrel during the Asian hours on Wednesday. Crude Oil prices may further gain ground due to rising concerns over supply disruptions, driven by the renewed geopolitical risks.
Yemen's Houthis, on Tuesday, attacked a Liberian-flagged bulk carrier in the Red Sea, killing three mariners and wounding two others. Reports indicate the vessel sank, raising concerns over potential disruptions to critical shipping routes from the Middle East to Europe and Asia. On Monday, a drone strike on a Greek-managed ship left two crew members injured and two others missing.
However, the upside of the crude Oil prices could be restrained as Oil traders adopt caution over new US tariffs threats. However, the delay in implementation of the US tariffs on major trading partners, including Japan, South Korea, and the European Union (EU), offers hopes to reach an agreement, which provides support for the Oil demand. Trump pushed the previous deadline of July 9 to August 1, and declared, "No extensions will be granted."
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is preparing to approve an increase of about 550,000 bpd for September when it meets on August 3. This follows Saturday’s decision by the Oil group to raise Oil output by 548,000 barrels per day in August.
The Energy Information Administration (EIA) published its monthly report on Tuesday, forecasting that the United States (US) will produce less Oil in 2025 than previously expected. This could be attributed to declining Oil prices, which have prompted US producers to dig slowly this year.
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