WTI declines below $63.00 as weekly EIA crude inventories unexpectedly build
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WTI price loses ground to near $62.95 in Friday’s Asian session.
US crude oil stocks unexpectedly rose for the week ending August 29.
OPEC+ is considering raising oil production further, said Reuters.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.95 during the early Asian trading hours on Friday. The WTI declines amid an unexpected build in U.S. crude inventories last week and expectations that OPEC+ producers will increase output targets at the upcoming meeting. Traders brace for the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting later on Sunday.
Crude inventories unexpectedly rose, indicating weaker demand and weighing on the WTI price. Data released by the Energy Information Administration (EIA) on Thursday showed that crude oil stockpiles in the US for the week ending August 29 climbed by 2.415 million barrels, compared to a fall of 2.392 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.8 million barrels.
Additionally, a report from Reuters that OPEC+ is considering an increase in its crude production levels raises concerns over a global oil supply glut, which contributes to the WTI’s downside. OPEC+ countries are scheduled to meet on Sunday to decide on October output. The group had already agreed to raise output targets by about 2.2 million barrels per day (bpd) from April to September, in addition to a 300,000 bpd quota increase for the United Arab Emirates.
On the other hand, geopolitical tensions might help limit the WTI’s losses. The United States is looking to pressure buyers of Russian crude to push Moscow into agreeing to a truce in Ukraine. US Treasury Secretary Bessent said on Tuesday that the US "will be examining sanctions on Russia very closely this week" due to the ongoing war in Ukraine. US President Donald Trump also told European leaders to stop buying Russian oil, addressing them during a call, per Reuters.
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