Oil rose on US stock draw, but geopolitical risks capped gains
The Energy Information Administration reported a 6 million-barrel decline in nationwide crude stocks, surpassing forecasts.
Global crude oil benchmarks settled higher on Wednesday after a larger-than-expected draw in US crude inventories, though gains were capped by persistent geopolitical tensions and signs of uneven supply trends.
Brent crude futures rose $1.05, or 1.6%, to $66.84 a barrel.
WTI gained 86 cents, or 1.4%, to $63.21.
The Energy Information Administration reported a 6 million-barrel decline in nationwide crude stocks, surpassing forecasts. However, geopolitical risks continued to temper market sentiment. Moscow rejected Western efforts to negotiate Ukraine's security guarantees without its involvement. Analysts noted diminishing prospects for a ceasefire, keeping sanctions pressure in place.
In Asia, India resumed purchases of discounted Russian crude for September and October despite US objections. Washington responded with a 25% tariff on Indian exports effective August 27, escalating trade frictions between the two countries.
Traders said the US stock draw was modestly supportive but insufficient to shift the broader bearish outlook. Crude futures remain down more than 10% this year as OPEC+ restores output and demand risks persist under US trade policies.
Written: Aiman Haikal