WTI Rebounds Above $62 After U.S. Inventory Draw, but Geopolitics Cap Gains

WTI crude oil futures rose above $62 a barrel on Wednesday, recovering from the prior session’s 1% loss after industry data showed a larger-than-expected U.S. stockpile decline.

The American Petroleum Institute reported a 2.4 million-barrel draw last week, beating forecasts of a 1.2 million-barrel drop and signaling stronger demand.

Upside momentum, however, was limited by geopolitical risks. Markets are closely watching potential Russia-Ukraine peace talks, which could ease sanctions on Russian crude and add to global supply. In parallel, Chinese refiners secured 15 cargoes of Russian oil for October and November delivery, offsetting weaker Indian demand and underscoring the resilience of Moscow’s exports despite sanctions.

Analysts note that prospects of a peace deal, softer sanction enforcement, and rising OPEC+ production have all weighed on sentiment, pushing oil to a near three-month low and leaving prices down over 10% in August.