WTI extends upside above $64.00 on tighter global supplies, weaker US Dollar

• WTI price edges higher to near $64.25 in Wednesday's early Asian session.
• Escalating tensions between Russia and Ukraine lift the WTI price. 
• A slowdown in global economic growth might weigh on the WTI price. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $64.25 during the early Asian trading hours on Wednesday. The WTI extends the rally on concerns over Russian supply disruptions and a weaker US Dollar (USD). Traders brace for the International Energy Agency (IEA) stockpiles report and the US Federal Reserve (Fed) interest rate decision later on Wednesday. 

Reuters reported Tuesday that Russia's oil pipeline monopoly Transneft, which handles more than 80% of the country's oil, warned producers they may have to cut output following Ukraine's drone attacks on critical export ports and refineries. 

Additionally, the Kirishi refinery, one of Russia's biggest refineries that has an annual processing capacity of over 20 million tons, halted crude processing after damage caused by a Ukrainian drone attack on Sunday. Fears of a decline in Russian oil exports boost the WTI price as Ukraine steps up its drone attacks on Russian refineries, tightening global oil supplies.  

US crude oil stocks declined more than expected last week, indicating stronger demand and supporting the black gold. Data released by the American Petroleum Institute (API) on Tuesday showed that crude oil stockpiles in the US for the week ending September 12 fell by 3.42 million barrels, compared to a rise of 1.25 million barrels in the previous week. The market consensus estimated that stocks would decline by 1.6 million barrels.

On the other hand, analysts believe that a slowdown in global economic growth will reduce oil consumption in the short term. This, together with oversupply fears resulting from the OPEC cartel's decision, may have a negative impact on the WTI price.