Oil Holds Gains Amid Russian Supply Risks
Oil prices held steady after their biggest rally in a week. Brent traded just below $68/barrel (up 1.6% Tuesday), while WTI hovered above $63/barrel. Sentiment was boosted by US President Donald Trump's statement urging NATO to shoot down Russian aircraft violating airspace and calling on Europe to cut energy imports from Moscow, while he assessed Ukraine's chances of victory were increasing.
Supply risks also increased after Russia considered restricting diesel exports following drone attacks on energy infrastructure, including pipelines. Analysts believe that a cut in refined product exports is likely bullish for crude oil, as refineries in other regions must increase operations, especially ahead of the winter season when demand is high.
On the other hand, potential additional supply comes from Iraq, which is finalizing a resumption of exports from the Kurdistan Region after a two-year hiatus—around 230,000 bpd could enter the market and add to surplus pressure. In the US, industry reports showed crude inventories fell by 3.8 million barrels last week, while distillate inventories rose; official data was released Wednesday.
The market structure is showing signs of strengthening. Brent's prompt spread is in backwardation around $0.70/barrel, double the level from two weeks ago, indicating near-term tightness. At 1:14 p.m. in Singapore, Brent Nov rose 0.1% to $67.69/barrel, and WTI Nov gained 0.1% to $63.50/barrel. (ads)
Source: Newsmaker.id
