- WTI price declines to near $60.50 in Wednesday’s Asian session.
- US crude inventories rose by 4.4 million barrels for the week ending November 14, API noted.
- US sanctions against major Russian producers might cap the downside for the WTI price.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.50 during the Asian trading hours on Tuesday. The WTI edges lower amid a rise in US crude inventories. Traders brace for the release of the US Energy Information Administration (EIA) crude oil stockpiles report later on Wednesday.
Data released by the American Petroleum Institute (API) on Tuesday showed that crude oil stockpiles in the US for the week ending November 14 climbed by 4.4 million barrels compared to a rise of 1.3 million barrels in the previous week. Crude oil inventories in the United States are so far showing a net gain of 9.3 million barrels for the year, according to Oilprice calculations of API data.
“Overall, the report was relatively bearish. However, the market will be more focused on the release of the widely followed US Energy Information Administration (EIA) inventory numbers later today,” said ING analysts.
On the other hand, traders will closely monitor US sanctions targeting Russian oil companies Rosneft and Lukoil, which are set to take effect on Friday. Any signs of ongoing geopolitical tensions could boost the WTI price. The US Treasury said that sanctions imposed in October on Rosneft and Lukoil are already squeezing Russia’s oil revenue and are expected to curb its export volumes over time.
