WTI price rises to around $68.75 in Wednesday’s early Asian session.
Growing worries about tighter supplies support the WTI price.
Crude inventories in the United States rose by 1.539 million barrels last week, noted API.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.75 during the Asian trading hours on Wednesday. The WTI climbs to the highest levels in over a month amid growing concerns over global supply risks.
US President Donald Trump reiterated that the United States (US) may impose additional tariffs on Russia if Moscow does not make progress toward ending the war in Ukraine within 10 days. Rising fears over tighter supplies due to additional sanctions on Russia boost the WTI price.
“The new deadline caught many analysts by surprise and, if enforced, could tighten Russian crude and fuel supplies to the global market,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities.
About the data, US crude oil inventories rose last week, which might cap the upside for the WTI’s price. The American Petroleum Institute (API) weekly crude oil stock report showed crude oil stockpiles in the US for the week ending July 25 increased by 1.539 million barrels, compared to a decline of 577,000 barrels in the previous week. The market consensus estimated that stocks would fall by 2.5 million barrels. So far this year, crude oil inventories are up nearly 13 million barrels, according to Oilprice calculations of API data.
Oil traders will keep an eye on the US Energy Information Administration (EIA) weekly crude oil stock report later on Wednesday. Also, the US Federal Reserve (Fed) interest rate decision will take center stage. The US central bank is likely to leave interest rates unchanged at 4.25% to 4.50% at the end of its two-day monetary policy meeting on Wednesday.
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