Crude benchmarks rose on Tuesday after fresh U.S. data showed another draw in oil stockpiles, reinforcing signs of tightening supply.
At 3:00 p.m. WAT, Brent crude traded at $68.54 per barrel, up 0.09%, while West Texas Intermediate (WTI) stood at $64.34 per barrel, gaining 0.05%. The American Petroleum Institute (API) reported that U.S. inventories fell by more than 3.8 million barrels for the week ending September 19, following a 3.42 million-barrel decline the previous week.
Prices had slipped earlier when Iraq, Turkey, and the Kurdistan Regional Government announced a deal to restart pipeline exports from northern Iraq. The plan stalled, however, as Norway’s DNO and UK-based Genel demanded guarantees for roughly $1 billion owed by Kurdish authorities. DNO alone is seeking about $300 million in repayments.
Despite the delays, analysts see underlying support for prices. “Prices are expected to remain supported but range-bound in the near term,” said Emril Jamil of LSEG, noting that restrictions on Russian fuel exports have added upward pressure.
Drone strikes on Russian refineries have already knocked out an estimated 1 million barrels per day of processing capacity, according to Energy Aspects. The damage has disrupted diesel shipments, with tracking firms OilX and Vortexa projecting that exports this month could fall to their lowest level in five years, the Financial Times reported.
Russia has kept its gasoline export ban in place for most of 2025, citing refinery damage and tighter domestic credit that discouraged stockpiling. Diesel exports have not faced formal restrictions but continue to decline under supply stress.