Oil higher as report shows U.S. crude inventories decline

Brent futures rose 26 cents to $67.89 a barrel, while U.S. West Texas Intermediate crude futures gained 26 cents at $63.67

Oil prices inched up on Wednesday after an industry report which showed U.S. crude inventories dropped last week.

Brent futures rose 26 cents to $67.89 a barrel by 0810 GMT. U.S. West Texas Intermediate crude futures also gained 26 cents at $63.67.

The market is expecting supply excess and stock builds globally in the last quarter of the year, but the focus recently has shifted back to Eastern Europe and the possible introduction of fresh sanctions on Russia, said PVM Oil Associates analyst Tamas Varga.

The stalled resumption of Kurdish oil exports along with Chevron’s curbed oil exports from Venezuela due to U.S. permit issues added to short-term bullishness in the market, he added.

Meanwhile, U.S. President Donald Trump on Tuesday said he believed Ukraine could retake all the territory captured by Russia. That would mark a sudden and striking rhetorical shift by the U.S. in Ukraine’s favour, after the country urged EU nations to phase out Russian oil and gas quicker earlier in the month.

On the supply side, American Petroleum Institute (API) figures showed U.S. crude and gasoline stocks fell, while distillate stocks rose last week, according to market sources citing the API data.

Official U.S. government energy data is due on Wednesday, which is expected to show a gain in both crude oil and gasoline stockpiles and a likely decline in distillates.

A Reuters poll of eight analysts ahead of the inventory data, however, estimates that crude oil and gasoline stockpiles rose in the week to September 19 while distillate inventories likely fell.