While oil declines, geopolitical concerns about a potential supply disruption are supporting prices and limiting declines
Concerns about a potential supply disruption from Russia are supporting prices. Oil prices fell slightly on Wednesday after rising more than 1% in the previous session. While ongoing geopolitical concerns are providing a backdrop for the market, investors are also focused on the expected Fed interest rate cut.
Brent crude futures were down 8 cents, or 0.1%, to $68.39 a barrel as of 6:30 a.m. GMT, while WTI Crude futures were down 6 cents, or 0.1%, to $64.46 a barrel.
Benchmarks rose more than 1% in the last trading session due to concerns about a potential supply disruption from Russia.
According to sources, Russia's oil pipeline monopoly Transneft has warned that it may be forced to cut production following Ukraine's drone attacks on Russia's critical export ports and refineries.
The market is focused on geopolitical turmoil and potential Russian supply disruptions. Market tensions are still holding prices high.
Investors are also awaiting the results of the Federal Reserve meeting scheduled for September 16-17. The central bank is likely to cut interest rates by 25 basis points on Wednesday, which would stimulate the economy and increase fuel demand.
Geopolitical tensions are continuing to support prices, but a global supply glut appears almost certain for the remainder of 2025 as the counterbalance, OPEC+, increases production.
Tuesday's data, citing data from the American Petroleum Institute (API), showed that U.S. crude oil and gasoline inventories fell last week, while distillate oil inventories increased.
Sources indicated that crude oil inventories decreased by 3.42 million barrels and gasoline inventories by 691,000 barrels in the week ending September 12, while distillate oil inventories increased by 1.91 million barrels compared to the previous week.
The market will closely monitor the data released by the U.S. Energy Information Administration (EIA) on Wednesday to see if it aligns with these figures.
Analysts estimate that crude oil inventories decreased by approximately 900,000 barrels last week, distillate inventories increased by approximately 1 million barrels, and gasoline inventories increased by approximately 100,000 barrels.
Related Articles
Oil prices are rising as supply concerns increase amid expectations of a prolonged conflict in the Middle East
Oil prices continued to rise following US and Iranian attacks on ships serving their respective purposes
Oil prices closed higher this week following renewed US-Iran hostilities
