WTI crude oil futures hovered around $64.50 per barrel on Wednesday, consolidating a three-day rally that lifted prices to their highest in two weeks.

Traders weighed heightened supply risks after Ukraine stepped up drone strikes on Russian refineries and export facilities. Industry sources said pipeline operator Transneft had warned producers of potential output cuts, though the company dismissed the claims as Western disinformation.

Beyond the conflict, prices found additional support from expectations of tougher Western sanctions on Russia and possible new restrictions targeting buyers of its crude.

On the demand side, investors awaited the Federal Reserve’s policy decision, with a widely anticipated rate cut seen as supportive for economic activity and fuel consumption.

Meanwhile, industry data showed U.S. crude inventories declined by 3.42 million barrels last week, more than double the forecast draw of 1.6 million barrels, underscoring tightening supply conditions.