WTI climbs to three-week high as EIA draw and geopolitical risks lift Oil prices

• WTI extends gains for a second day, supported by a surprise draw in US crude stocks.
• EIA data showed inventories fell by 0.607M barrels, defying forecasts for a modest rise of 0.5M barrels.
• US President Donald Trump warns Europe at the UN General Assembly to halt Russian energy imports.

West Texas Intermediate (WTI) Crude Oil extends its rebound for the second straight day on Wednesday, recovering from its weakest level in nearly two weeks, hit earlier on Monday.

At the time of writing, WTI is trading around $64.55 per barrel, its highest level since September 3, up over 1.50% on the day. The bounce reflects a combination of bullish inventory signals and rising geopolitical tensions that have re-injected risk premiums into energy markets.

The latest US Energy Information Administration (EIA) data showed crude oil inventories declining by 0.607 million barrels for the week ending September 19, compared with forecasts for a 0.5 million build. The draw, though modest compared with the sharp 9.3 million barrel decline reported a week earlier, still pointed to steady refinery runs and resilient demand.

Commercial stocks fell by 0.6 million while the Strategic Petroleum Reserve edged higher, leaving total crude holdings at 820.7 million barrels. Refinery runs held steady at 16.48 million barrels per day, while higher imports and softer exports limited the draw.

On the geopolitical front, oil sentiment was further bolstered by renewed risks across key producing regions. Iran stated that it would continue selling Oil to China, even if United Nations sanctions were reimposed. With China accounting for nearly 80% of Iran's exports last year, any renewed sanctions regime would risk disrupting such flows.

Meanwhile, US President Donald Trump escalated rhetoric against Russia during his speech at the United Nations General Assembly in New York on Tuesday. He warned European nations to immediately halt purchases of Russian oil and gas or face new US tariffs, calling continued imports from Moscow "inexcusable." The threat underscored Washington's determination to curb Russia's energy revenues, raising questions about how Europe would balance compliance with its own supply security.