WTI crude oil futures rise 1%, currently at $64.3 per barrel.

WTI crude oil futures rise 1%, currently at $64.3 per barrel.

WTI crude oil futures rose by 1% on Wednesday, reaching $64.3 per barrel. This increase comes amid a mix of geopolitical tensions, supply concerns, and market expectations.

The price gain was driven by a combination of factors. Firstly, a deal to resume oil exports from Iraq's Kurdistan region through Turkey was delayed, easing fears of oversupply in the short term. Secondly, the American Petroleum Institute reported a larger-than-expected draw in U.S. crude inventories, which added to the bullish sentiment. Lastly, geopolitical risks around Russia further supported the market, as U.S. President Donald Trump's remarks at the United Nations General Assembly raised the risk of further sanctions on Russian energy exports .

Despite these supportive factors, oversupply worries persist. The International Energy Agency (IEA) forecasts that world oil supply will rise more rapidly this year and a surplus could expand in 2026 as OPEC+ members increase output and supply from outside the group grows . Additionally, the European Union is considering stricter sanctions on Russian oil exports, which could potentially disrupt global supply .

In contrast, U.S. crude oil stockpiles are expected to have risen last week, while gasoline and distillate inventories likely fell, according to a preliminary Reuters poll . This development could help alleviate some concerns over Russian supplies amid recent attacks on the country's oil infrastructure.

Overall, the global oil market is bracing for elevated supply and slowing demand, hampered by the take-up of electric vehicles and economic pressures fueled by U.S. tariffs. The market will continue to monitor geopolitical developments and inventory levels to gauge the future direction of oil prices.