By 0005 GMT, Brent futures had increased 27 cents to $67.90 a barrel. Crude futures for the US West Texas Intermediate increased 28 cents to $63.69.
An industry survey revealed that US crude stocks fell last week, which fueled a perception of tightening supply in the market and caused oil prices to rise for a second day on Wednesday.
By 0005 GMT, Brent futures had increased 27 cents to $67.90 a barrel. Crude futures for the US West Texas Intermediate increased 28 cents to $63.69.
Two major producers requested guarantees for debt payments, while an agreement to begin exports from Iraq’s Kurdistan faltered, stopping pipeline supplies of oil from the area to Turkey amid expectations of a settlement to break the impasse. As a result, both benchmarks rose more than $1 a barrel on Tuesday.
Under the deal, oil corporations and the federal and Kurdish regional governments of Iraq will begin exporting around 230,000 barrels of oil per day. Since March 2023, the pipeline has ceased operations.
Market sources quoting the API data later in the day revealed that US distillate stockpiles increased last week, while crude and gasoline stocks declined.
According to the sources, the week ending September 19 saw a 3.82 million barrel drop in crude stockpiles, a 1.05 million barrel drop in gasoline inventories, and a 518,000 barrel increase in distillate inventory.
On Wednesday, the US government is anticipated to release official energy statistics that will likely show a fall in distillates and an increase in crude oil and gasoline stocks.
According to Reuters, US giant Chevron will only be able to export almost half of the 240,000 barrels per day of petroleum it produces with partners in Venezuela, which is another indication of a tightening supply.
The corporation was given a new license to operate in the sanctioned nation in July, but the new regulations will limit the amount of heavy, high-sulfur oil that Venezuela produces that reaches the United States.