Oil prices jumped nearly 3% on Wednesday, reaching seven-week highs, as a surprise U.S. inventory draw and supply disruptions in Iraq, Venezuela and Russia fed a tightening narrative despite broader oversupply concerns.
Brent settled at $69.31, up $1.68 (2.5%), its strongest close since August 1. WTI finished at $64.99, up $1.58 (2.5%), its highest since September 2.
The EIA reported a crude stock draw of 607,000 barrels, surprising markets that had expected a build of 235,000 barrels. The draw, alongside declines in gasoline and distillates, gave the report a supportive tone. “Draws across the board here,” noted John Kilduff of Again Capital, underscored tightening conditions.
Geopolitics also added fuel: Ukraine struck Russian oil facilities in Volgograd, prompting a state of emergency in Novorossiisk, Moscow’s key Black Sea export hub. Russian fuel shortages and the prospect of new sanctions elevated risk premiums. Meanwhile, Chevron curtailed exports from Venezuela over U.S. permit issues, and a stalled restart of Kurdish oil exports left uncertainty over future flows.
The rally came even as the IEA continues to forecast oversupply in 2026 from rising OPEC+ and non-OPEC output. Analysts said the day’s upside reflected short-term disruptions overshadowing long-term bearish fundamentals.
On the political side, Trump shifted rhetoric by suggesting Ukraine could retake all Russian-occupied territory, a stance that could pressure Europe toward faster phaseouts of Russian oil and gas.