What is the story about?
Global oil prices held steady on Wednesday following a three-day rally, as traders weighed the impact of continued Ukrainian attacks on Russian crude infrastructure
against broader market fundamentals. West Texas Intermediate (WTI) futures edged closer to $65 a barrel, after rising 3.4 per cent over the past three sessions, while Brent crude settled above $68. The gains follow Ukraine’s latest drone strike on Russia’s Saratov refinery, part of a broader campaign targeting the country’s energy assets. The attacks have contributed to reducing Russian oil production to its lowest level since the pandemic, adding fresh uncertainty to global supply dynamics.
Oil Prices Traded Range Bound
Despite recent upward momentum, oil prices remain confined within a $5 trading band that has persisted for most of the past month. Traders continue to navigate a complex landscape marked by geopolitical tension and bearish supply fundamentals.One major factor pressuring prices is the accelerated return of supply from OPEC+, which has prompted growing concerns that a supply glut may form later this year. Analysts suggest that the added volumes from the oil cartel could outweigh current disruptions, potentially dampening bullish sentiment in the coming months.
Will the Oil Price Jump Further?
Meanwhile, the European Union is preparing a new round of sanctions aimed at companies in India and China that are believed to be facilitating Russia’s oil trade. The move is part of an upcoming sanctions package designed to increase pressure on Russian President Vladimir Putin to end the ongoing conflict with Ukraine.In the United States, market fundamentals added a supportive note, with an industry report indicating that crude inventories fell by 3.4 million barrels last week — the largest decline in a month. If confirmed by official government data due Wednesday, the drawdown could signal improving demand or tighter supply in the world’s largest oil consumer.
Oil Prices Today
Oil prices are trading up for third consecutive day on Wednesday. The WTI crude price is trading at $64.47, while Brent crude is trading at $68.45, on Wednesday morning.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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