EIA CRUDE OIL INVENTORIES ACTUAL 1.792M (FORECAST -0.05M, PREVIOUS -0.607M)

EIA CRUDE OIL INVENTORIES ACTUAL 1.792M (FORECAST -0.05M, PREVIOUS -0.607M)

West Texas Intermediate (WTI) crude oil prices surged to a three-week high on Wednesday, buoyed by a surprise draw in US crude stocks and escalating geopolitical tensions. The latest data from the US Energy Information Administration (EIA) revealed a decline of 0.607 million barrels in crude oil inventories for the week ending September 19, surpassing forecasts for a modest rise of 0.5 million barrels .

The unexpected inventory draw, coupled with steady refinery runs and resilient demand, has supported WTI's rebound. At the time of writing, WTI was trading around $64.55 per barrel, its highest level since September 3, up over 1.50% on the day. The bounce reflects a combination of bullish inventory signals and rising geopolitical risks that have re-injected risk premiums into energy markets.

Geopolitical risks have been further amplified by recent statements from Iran and the United States. Iran has stated it would continue selling oil to China, even if United Nations sanctions were reimposed, which could disrupt global oil flows. Additionally, US President Donald Trump warned European nations to halt Russian energy imports or face new US tariffs, underscoring Washington's determination to curb Russia's energy revenues .

The latest EIA data showed commercial stocks fell by 0.6 million barrels while the Strategic Petroleum Reserve edged higher, leaving total crude holdings at 820.7 million barrels. Refinery runs held steady at 16.48 million barrels per day, with higher imports and softer exports limiting the draw.

Investors should closely monitor these developments, as they could significantly impact WTI oil prices. The combination of reduced inventories and geopolitical risks has created a favorable environment for oil prices, which may continue to rise in the coming weeks.