WTI crude oil futures climbed to approximately $69.5 per barrel on Thursday, driven by escalating geopolitical tensions that outweighed concerns over rising U.S. crude inventories.
Oil rises on elevated geopolitical tensions
On Wednesday, Ukraine used Western-supplied long-range weapons for the second time, following President Putin’s approval of a revised nuclear doctrine expanding the conditions for deploying nuclear weapons. Simultaneously, the U.S. vetoed a UN resolution for a Gaza ceasefire, heightening fears of supply disruptions amid Middle East unrest. However, gains were capped by indications of ample supply in the market.
U.S. inventories increase
Data from the EIA showed U.S. crude oil inventories increased by 0.5 million barrels last week, surpassing expectations of a 0.4 million-barrel build. Gasoline stocks also rose by 2.1 million barrels, exceeding the forecasted 1.6 million-barrel rise.
