WTI declines to near $61.50 on EIA crude oil inventories surge

• WTI price drifts lower to near $61.70 in Thursday’s Asian session.

• OPEC+ agreed on a modest increase of 137,000 barrels per day for November.

• US crude inventories climbed by 3.715 million barrels last week, the EIA noted. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.70 during the Asian trading hours on Thursday. The WTI edges lower amid a larger-than-expected crude inventory build. Traders will take more cues from the speech by Federal Reserve (Fed) Chair Jerome Powell later on Thursday. 

The US Energy Information Administration (EIA) reported on Wednesday that crude oil stockpiles in the US for the week ending October 3 climbed by 3.715 million barrels compared to an increase of 1.792 million barrels in the previous week. Analysts estimated that stocks would rise by 2.25 million barrels.

On the other hand, the WTI price received some support after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a smaller-than-expected increase in its crude production levels. The group will raise oil output from November by 137,000 barrels per day (bpd), below market expectations of as much as a 500,000 bpd boost to production. 

Additionally, persistent geopolitical risks in Ukraine could lead to additional sanctions on Russian energy exports, lifting the WTI price. The US proposed that the G7 allies impose tariffs as high as 100% on China and India for their purchases of Russian oil in an effort to convince Russia to end the war in Ukraine.