WTI remains above $62.50 following news of Israel planning to hit Iranian nuclear sites

• WTI price rose due to rising supply concerns following the news of Israel planning to strike nuclear facilities in Iran.
• Iran may block the waterways through the Strait of Hormuz, raising concerns for Oil flow from major Gulf countries.
• API Weekly Crude Oil Stock increased by 2.49 million barrels last week, defying expectations of a 1.85 million-barrel draw.

West Texas Intermediate (WTI) Oil price extends its gains for the fourth successive session, trading around $62.70 per barrel during the early European hours on Wednesday. Crude Oil prices surge following the news of Israel planning to strike nuclear facilities in Iran, which could destabilize the Oil supply from the Middle East region. However, CNN cited officials saying it was not clear that Israeli leaders had made a final decision.

An Israeli attack could upset flows from Iran, the third-largest Oil-producing country among the members of the Organization of the Petroleum Exporting Countries (OPEC). Oil prices rise as supply concerns increase if Iran may retaliate and block the waterways through the Strait of Hormuz, raising concerns for crude Oil exports from major Gulf countries like Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates.

The upside of the Oil prices could be restrained due to improving crude supply in the United States (US), the world's biggest Oil consumer. American Petroleum Institute (API) Weekly Crude Oil Stock rose by 2.49 million barrels in the previous week, lower than the previous increase of 4.28 million-barrel increase the week before, but against the expected 1.85 million-barrel draw. Investors are looking ahead to the crude Oil Stocks Change from the Energy Information Administration (EIA) later on Wednesday.

Moreover, the Oil production in Kazakhstan has increased by 2% in May, following a decline of 3% in April, although it still exceeded its OPEC+ quota. This increase has defied pressure from OPEC+ on the country to reduce its output. The Kazakh energy ministry avoided responding to a request to comment on production figures.