Oil prices slipped slightly on Wednesday after rising 1% in the previous session. At 7:30 a.m. WAT, Brent crude futures fell 8 cents, or 0.1%, to $68.39 a barrel, while U.S. West Texas Intermediate futures dropped 6 cents, or 0.1%, to $64.46 a barrel. The decline follows a session in which the benchmarks settled more than 1% higher amid concerns about possible disruptions to Russian supplies.
Reuters reported that three industry sources said Russia’s oil‑pipeline monopoly, Transneft, has warned producers of potential output cuts after Ukraine’s drone attacks on key export ports and refineries. Investors are closely monitoring the impact of those attacks on global oil supply. At the same time, market participants are awaiting the Federal Reserve’s September 16‑17 meeting, where new governor Stephen Miran will join the deliberations. The central bank is widely expected to cut interest rates by 25 basis points, a move that could stimulate the economy and boost fuel demand.
Recent data showed a mixed picture for U.S. fuel inventories. According to American Petroleum Institute figures cited by market sources, crude stocks fell by 3.42 million barrels and gasoline inventories dropped by 691,000 barrels in the week ending September 12, while distillate inventories rose by 1.91 million barrels from the prior week. A Reuters poll of analysts estimated that crude inventories fell by about 900,000 barrels, distillate stockpiles increased by roughly 1 million barrels, and gasoline stockpiles rose by about 100,000 barrels. The market will watch Wednesday’s U.S. Energy Information Administration report to see whether it aligns with these figures.
The modest decline in oil prices on Wednesday underscores the ongoing volatility in the market. As the global energy landscape continues to evolve, investors will closely track these developments to gauge their impact on oil supply, demand, and pricing.
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