WTI edges higher to near $63.50 amid global geopolitical risks

• WTI price rises to near $63.50  in Thursday's early Asian session.
• Geopolitical tension mounts as Poland shoots down drones. 
• Crude inventories rose by 3.9 million barrels in the week to September 5, EIA said.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.50 during the early Asian trading hours on Thursday. The WTI trades in positive territory for the third consecutive day amid global geopolitical risks. 

Rising geopolitical tensions in Europe and the Middle East provide some support to the black gold. Geopolitical risks in Europe rose after Poland shot down Russian drones that crossed into its territory in Russia's latest attacks on Ukraine. On the Middle East front, Israel on Tuesday launched a strike on Doha, Qatar, targeting the senior leadership of Hamas. Qatar said the attack by Israel violated international law and threatens to widen the conflict in the region, the source of about one-third of global oil supplies.

Crude inventories unexpectedly rose last week, indicating weaker demand and might cap the upside for the WTI price. Data released by the Energy Information Administration (EIA) on Wednesday showed that crude oil stockpiles in the US for the week ending September 5 climbed by 3.939 million barrels, compared to a rise of 2.415 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.1 million barrels.

Furthermore, the US Energy Information Administration (EIA) stated on Tuesday that it expects global crude prices to remain under significant pressure in the months ahead due to rising inventories by OPEC+, the Organization of the Petroleum Exporting Countries, and its allies, including Russia. This, in turn, might also undermine the WTI price in the near term.