Oil Pauses Gains as US Crude Stockpile Build and Global Supply Uncertainty Linger
West Texas Intermediate (WTI) hovers around $72 per barrel, while Brent crude surpasses $76. An industry report from the American Petroleum Institute indicates a 3.3 million barrel increase in US commercial crude stocks last week, potentially extending a four-week build trend.
Tightening supply concerns fueled crude's recent rally, driven by OPEC+'s possible production delay, export disruptions in Kazakhstan due to a drone strike, and the G7's consideration of a stricter Russian oil price cap.
Despite the market's initial volatility, trading has stabilized due to decreasing implied volatility. Exports from Iraq's Kurdistan region are expected to resume this week, though Turkey has not yet confirmed the recommencement of flows to Ceyhan.
President Trump's recent characterization of Ukrainian President Volodymyr Zelenskiy as a dictator has raised concerns that a peace agreement with Russia could be reached without Kyiv's involvement. Any such agreement may impact the status of sanctioned Russian oil exports.