WTI falls as EIA draw offset API build, Russian sanctions limit downside

• WTI slips toward $59.00 on Wednesday, declining 2.80% on the day.
• API data showed a build in US Crude stocks, while the Energy Information Administration reported a sharp drawdown.
• Upcoming US sanctions on Rosneft and Lukoil could help limit the downside in Oil prices.

West Texas Intermediate (WTI) US Oil trades around $59.00 on Wednesday at the time of writing, down 2.80% on the day. The price remains under pressure as traders weigh mixed US inventory data and monitor escalating geopolitical risks linked to upcoming sanctions on major Russian producers.

According to the American Petroleum Institute (API), US Crude Oil stockpiles for the week ending November 14 rose by 4.4 million barrels, following a 1.3 million barrel increase the previous week. These figures initially added bearish pressure, reinforcing the perception that US supply has been running above seasonal averages so far this year.

However, the more closely watched report from the Energy Information Administration (EIA) revealed a very different picture earlier in the day. Official data showed a draw of 3.426 million barrels, compared with expectations for a 1.9 million barrel decline and after a substantial 6.413 million barrel build in the prior week. This divergence helped curb deeper losses in WTI, as traders typically regard EIA data as the more reliable gauge of underlying market balance.

Beyond inventories, geopolitical developments continue to influence sentiment. The United States (US) is preparing to enforce sanctions on Russian Oil companies Rosneft and Lukoil starting Friday. The US Department of the Treasury has stated that the measures introduced in October are already pressuring Russia's Oil revenues and are expected to reduce export volumes over time. Any signs of persistent geopolitical strain could lend support to Oil prices by tightening global supply.

Overall, WTI remains caught between conflicting forces. The API's inventory build and broad risk-off sentiment are weighing on prices, while the sharp EIA draw and looming Russian sanctions are helping cushion the decline, keeping the benchmark near $59.00.