West Texas Intermediate (WTI) crude rose $1.58, or 2.5%, to close at $64.99 per barrel, its strongest finish since September 2. Brent crude futures also gained ground, climbing $1.68 to settle at $69.31 per barrel, the highest closing price since August 1.
The rally was fueled in part by U.S. inventory data showing unexpected stockpile declines, signaling tighter market conditions. Analysts noted that the drawdown amplified worries over already fragile supply lines strained by geopolitical risks.
Adding to the uncertainty, the ongoing suspension of Kurdish oil exports from Iraq has left around 230,000 barrels per day offline. While preliminary agreements have been reached between Iraqi authorities and eight international oil companies to resume flows, two key producers, Norway’s DNO and the UK’s Genel Energy, have withheld their approval, pressing for guarantees on debt repayments before signing on.
The oil market saw a significant boost, with West Texas Intermediate and Brent crude prices climbing to their highest in weeks due to a surprising drop in U.S. stockpiles and geopolitical tensions. The suspension of Kurdish oil exports from Iraq further strained supply lines, as key producers withheld approval for resumption, seeking guarantees on debt repayments.