WTI price declines to $63.85 in Friday’s early Asian session.
Traders will monitor US pressure on India to halt Russian oil imports.
US crude stocks fell another 2.4 million barrels last week, noted EIA.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.85 during the early Asian trading hours on Friday. The WTI edges lower amid concerns about oversupply and US pressure on India to halt Russian oil imports.
The US has doubled tariffs on many imports from India to 50% as US President Donald Trump followed through on his threat to punish India for purchasing discounted Russian oil. This measure came into effect on Wednesday and exacerbates supply fears, weighing on the WTI price. Oil traders will closely monitor India's response to pressure from the US to stop buying Russian oil.
Reuters reported that Russia launched missile and drone attacks on Ukraine on Thursday, resulting in the deaths of at least 21 people in Kyiv. Meanwhile, the Ukrainian military said it used drones to hit two Russian oil refineries overnight. The escalating tensions between Russia and Ukraine might boost the WTI price in the near term.
Data released by the US Energy Information Administration (EIA) on Wednesday showed crude inventories declined more than expected last week. This weekly report pointed to robust demand in the world’s largest oil consumer and could support the WTI price. Crude oil stockpiles in the US for the week ending August 22 fell 2.392 million barrels, compared to a decline of 6.014 million barrels in the previous week. The market consensus estimated that stocks would decrease by 2.0 million barrels.
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