Oil prices rise as geopolitical risks overshadow inventory builds

[Oil Pumps And Rig At Sunset By The Sea]
imaginima/E+ via Getty Images

Crude futures climbed Wednesday as heightened geopolitical tensions outweighed bearish U.S. stockpile data. The Energy Information Administration reported crude inventories rose by 3.9 million barrels last week, while gasoline and distillate supplies increased by 1.5 million and 4.7 million barrels, respectively.

“Despite this largely bearish report, crude oil prices are pushing higher amid the rise in geopolitical tensions not just with Russia but also following Israel’s surprise strikes targeting Hamas leadership in Qatar, weakening the prospects for peace in their ongoing conflict and threatening to sour already shaky relations with other nations in the region,” Arlan Suderman, commodities economist at StoneX, said in a note to clients.

West Texas Intermediate (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) gained 2.2% to $64.10 a barrel, while Brent (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) crude rose 2% to $67.73.

MORE ON CRUDE OIL FUTURES, BRENT FUTURES

* Oil Markets: Bracing For A Surplus [https://seekingalpha.com/article/4820832-oil-markets-bracing-surplus]
* Commodities: Gold Hits Another Record High [https://seekingalpha.com/article/4820815-commodities-gold-hits-another-record-high]
* Commodities: Oil Gains On Uncertainty Around Russian Oil [https://seekingalpha.com/article/4820420-commodities-oil-gains-uncertainty-around-russian-oil]
* Narrowing Brent-Dubai spread is said to boost Asian appetite for Atlantic crude [https://seekingalpha.com/news/4493792-narrowing-brent-dubai-spread-is-said-to-boost-asian-appetite-for-atlantic-crude]
* Crude inventory rises by 3.9M barrels for week ended Sept 5 – EIA [https://seekingalpha.com/news/4493710-crude-inventory-rises-by-39m-barrels-for-week-ended-sept-5-eia]