WTI crude oil futures advanced toward $64 per barrel on Wednesday, building on a 1.8% gain from the previous session, as supply concerns mounted following a sharp drop in US inventories.

Data from the American Petroleum Institute (API) showed that US crude stocks declined by 3.8 million barrels last week, the steepest draw in seven weeks. The tighter outlook was compounded by stalled negotiations to restart oil exports from Iraq’s Kurdistan region, where major producers are demanding debt repayment guarantees. As a result, pipeline flows to Turkey have remained halted since March 2023.

Geopolitical risks also added support to prices. NATO vowed a “robust” response to Russian airspace violations, while Ukrainian drone strikes continued to hit Russian refineries and pipelines, raising fears of further supply disruptions.

Meanwhile, in Venezuela, Chevron announced it would export only about half of the 240,000 barrels per day it produces with local partners. Although Washington granted limited authorization in July to continue operations, shipments of heavy crude to the US remain restricted, further tightening global supply prospects.