WTI rises to near $62.00 on Russia supply concerns

• WTI price gains traction near $61.90 in Thursday's early European session. 
• Geopolitical risks and stricter sanctions on Russian crude support the WTI price. 
• The EIA revealed an increase in crude oil stocks by 1.79 million barrels last week. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.90 during the Asian trading hours on Thursday. The WTI drifts higher, snapping the three-day losing streak amid prospects of tougher sanctions on Russian crude. 

Escalating geopolitical tensions and talk of stricter sanctions on Russian crude provide some support to the WTI price. The US will provide Ukraine with intelligence to support long-range missile strikes on Russian energy infrastructure, the Wall Street Journal (WSJ) reported on Wednesday. US President Donald Trump approved the move, and US officials are urging NATO allies to do the same. 

G7 Finance Ministers on Wednesday pledged to intensify pressure on Russia by targeting countries expanding their purchases of Russian oil as well as entities helping to bypass restrictions.

Nonetheless, the potential upside for the WTI price might be limited due to expectations of increased supply from the Organization of the Petroleum Exporting Countries and allies (OPEC+) production hike scheduled for next month. Traders expect the OPEC+ to boost production in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share, three sources familiar with the talks said.

A bigger-than-expected increase in US crude inventories last week might also weigh on the black gold. Data released by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil stockpiles in the US for the week ending September 26 rose by 1.792 million barrels, compared to a decline of 607,000 barrels in the previous week. Analysts forecast that stocks would increase by 1.5 million barrels.