- WTI price attracts some buyers to near $62.65 in Wednesday’s Asian session.
- Supply disruptions from the US winter storm and geopolitical risks could boost the WTI price.
- Traders will take more cues from the EIA crude oil stockpiles report later on Wednesday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.65 during the Asian trading hours on Wednesday. The WTI price edges higher amid concerns over US production losses brought on by the winter storm. Traders await the release of the Energy Information Administration (EIA) crude oil stockpiles report later on Wednesday.
Analysts estimated the severe winter storm that has swept across the US knocked out an estimated 2 million barrels per day, or roughly 15% of national output over the weekend, and exports of crude oil and liquefied natural gas from US Gulf Coast ports reportedly fell to zero on Sunday.
“Severe weather has boosted crude futures, with short-term risks tilted to the upside on fears of supply disruptions,” said Fawad Razaqzada, market analyst at City Index.
Furthermore, rising geopolitical tensions in the Middle East might contribute to the WTI’s upside. Reuters reported that a US aircraft carrier and supporting warships have arrived in the Middle East, expanding US President Donald Trump’s capabilities to defend US forces or potentially take military action against Iran.
The EIA crude oil stockpiles report will be published later in the day. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, which might drag the WTI price lower.
