West Texas Intermediate (WTI) crude oil futures advanced towards $64 per barrel on Wednesday, continuing the momentum of a 1.8% increase from the previous day. This rise followed the release of data from an industry report indicating a decline in U.S. crude inventories, heightening concerns surrounding tightening supply dynamics. According to data from the American Petroleum Institute (API), U.S. crude stocks decreased by 3.8 million barrels last week, marking the most significant drawdown in seven weeks.
In a related development, discussions aimed at resuming oil exports from Iraq's Kurdistan region have hit an impasse. Two major producers are demanding debt repayment guarantees, resulting in the continued suspension of pipeline shipments to Turkey since March 2023.
Geopolitical tensions further bolstered oil prices, with NATO committing to a "robust" response to Russian airspace violations amidst Ukrainian drone strikes on Russian refineries and pipelines.
Moreover, Chevron's operations in Venezuela are affected by a new U.S. authorization, issued in July, which, while permitting ongoing activities in the sanctioned nation, restricts the company to exporting only approximately half of the 240,000 barrels per day it produces with partners, limiting shipments of its heavy crude to the United States.
