Oil prices inched higher on Thursday after a three-day slide, buoyed by worries over potential tighter sanctions on Russian crude, though abundant supply kept gains in check.
At 06:31 GMT, Brent futures rose 20 cents, or 0.31%, to $65.55 a barrel, while U.S. West Texas Intermediate (WTI) gained 20 cents, or 0.32%, to $61.98 a barrel. Analysts noted that the uptick represents a technical bounce after Brent and WTI fell around 1% in the previous session, marking the lowest close for Brent since June 5 and WTI since May 30.
“Buying interest emerged as WTI neared its $60 support level, while heightened geopolitical risks and speculation about tighter sanctions on Russian crude also lent support,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
The G7 finance ministers indicated on Wednesday that they would target those continuing to purchase Russian oil or facilitating its bypass. Meanwhile, the U.S. will provide Ukraine with intelligence for long-range missile strikes on Russia’s energy infrastructure, according to Reuters, confirming a Wall Street Journal report. This initiative aims to limit Kremlin revenues by targeting refineries, pipelines, and other critical assets.
Chinese crude stockpiling helped stabilize prices, limiting downside pressure, traders said.
Yet concerns over a slowing global economy amid the U.S. government shutdown, combined with expectations of increased OPEC+ output, capped further gains. The Trump administration froze $26 billion in funds for Democratic-leaning states, continuing to leverage the shutdown for political objectives.
On the supply front, OPEC+ could increase production in November by as much as 500,000 barrels per day—triple the rise in October—as Saudi Arabia seeks to regain market share, three sources familiar with the discussions said. This comes as demand in both the U.S. and Asia starts to taper.
U.S. Energy Information Administration data released Wednesday showed rising crude, gasoline, and distillate inventories last week due to softening refining activity and lower demand. Crude stocks increased by 1.8 million barrels to 416.5 million barrels for the week ending September 26, above the 1-million-barrel rise forecast in a Reuters poll.
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