DTN Oil Update
Oil Extends Gains on Supply Disruptions, Inventory Draws
VIENNA (DTN) -- Oil prices extended gains Wednesday, Sept. 24, morning amid mounting international pressure on Russia, supply disruptions and a delayed return of some 230,000 bpd of crude oil to the export market. An industry report showing U.S. commercial crude oil and gasoline stocks shrinking last week also lent some price support.
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In crude oil, NYMEX-traded WTI for November delivery rose $1.03 to $64.44 bbl, and ICE Brent for November delivery gained $1.00 to $68.63 bbl.
Among oil products, October RBOB gasoline futures advanced $0.0118 to $2.0109 gallon, and the front-month ULSD contract rose $0.0245 to $2.3525 gallon.
The U.S. Dollar Index strengthened by 0.607 points to 97.500.
U.S. President Donald Trump stepped up his rhetoric against Russia's war in Ukraine in what was his most significant policy pivot vis-a-vis Russia to date. After only last month demanding territorial concessions from Ukraine in order to secure peace, the president on Tuesday said Ukraine should retake all territories occupied by Russian forces.
At the same time, Trump admonished India and China for funding Russia's war via oil purchases and again called on Europe to cede energy purchases, step up sanctions and financially support Ukraine.
Oil futures have been trading in a narrow channel for the past two months and were on track for a small decline in the third quarter as oversupply concerns intensified and pushed geopolitical risks to the sideline. President Trump's pivot could bring supply risks and geopolitical considerations back into the foreground.
The American Petroleum Institute on Tuesday, Sept. 23, reported that commercial crude oil inventories have fallen by 3.82 million bbl last week, while nationwide gasoline stocks shrank by 1.05 million bbl. Official government oil inventory data from the U.S. Energy Information Administration is scheduled for 10:30 a.m. EDT release Wednesday.