Oil Extends Gains Amid Supply Uncertainty, API Reports Crude Stockpile Increase
West Texas Intermediate (WTI) crude oil extended its modest gains as global supply uncertainties lingered. However, an industry report indicated another rise in US crude inventories.
WTI futures climbed toward $73 a barrel, buoyed by a weakening dollar that enhances the allure of commodities priced in the US currency. Crude has been trending upwards this week due to concerns over potential supply tightening following reduced oil flows through a critical Kazakh pipeline and OPEC+'s deliberations sobre pushing back a planned production increase.
Market volatility has subsided after a turbulent start to the year, with prices remaining within a narrow range this month. Analysts attribute this to market desensitization to US President Trump's proposed policy changes.
"Prices are likely to remain rangebound, driven by headlines," noted analysts from Royal Bank of Canada, adding that "continued lack of significant market catalysts" will lead traders to focus on average price levels.
Meanwhile, the American Petroleum Institute (API) reported an industry-estimated 3.3 million-barrel increase in US commercial crude inventories last week. If confirmed by official data on Thursday, this would mark the fourth consecutive weekly buildup.