An industry report indicates that US crude inventories fell last week, adding to the market sentiment of tight supply. Oil prices are generally stable on Wednesday.
Brent futures rose 3 cents to $67.66 per barrel as of 06:30 GMT. WTI Crude futures rose 5 cents to $63.46.
Both indices gained more than $1 per barrel on Tuesday as an agreement to resume exports from northern Iraq stalled. Despite hopes of a deal to end the stalemate, which began when two major producers demanded debt repayment guarantees, pipeline shipments from the region to Türkiye have been halted.
The agreement between the oil companies will restart oil exports of approximately 230,000 barrels per day. Pipeline flows have been halted since March 2023.
Supply cuts from Russia are supporting prices, but increases are limited due to uncertainty surrounding the Federal Reserve’s (Fed) interest rate decisions.
Data from the American Petroleum Institute (API) showed that US crude oil and gasoline inventories fell, while distillate oil inventories increased.
Sources indicated that the data showed that crude oil inventories decreased by 3.82 million barrels, gasoline inventories decreased by 1.05 million barrels, and distillate oil inventories increased by 518,000 barrels in the week ending September 19.
Official US government energy data is expected to be released on Wednesday and show increases in both crude oil and gasoline inventories, but a possible decrease in distillate oil inventories.
There are also reportedly other signs of tightening supply. US giant Chevron will only be able to export half of the 240,000 barrels of crude oil per day it produces with its partners in Venezuela.
The company received permission to operate in the sanctioned country in July, but new rules mean less of the heavy, high-sulfur crude produced in Venezuela will reach the United States.