Oil holds three-day gain with focus on Russian supply risks

Oil steadied after a three-day gain as traders assess the fallout from Ukrainian attacks on Russian crude infrastructure.

West Texas Intermediate rose toward $65 a barrel after gaining 3.4% in the previous three sessions, while Brent closed above $68. Ukraine attacked the Saratov refinery in its latest strike on Russian energy facilities, which have helped cut the OPEC+ member’s production to its lowest post-pandemic level.

The recent gains haven’t been enough to push oil out of the $5 band it has been in for most of the past month, buffeted between geopolitical tensions and bearish fundamentals. The accelerated return of OPEC+ supply has boosted predictions that a glut will form later in the year.

Meanwhile, the European Union is weighing sanctions on companies in India and China that are enabling Russia’s oil trade as part of an upcoming package of fresh restrictions to pressure Vladimir Putin to negotiate an end to the conflict.

In the US, an industry report showed crude inventories fell by 3.4 million barrels last week. That would be the biggest drop in a month if confirmed by official data later on Wednesday.

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