By 0116 GMT, Brent oil futures were up 15 cents, or 0.2%, to $65.50 a barrel. At $61.92 a barrel, U.S. West Texas Intermediate oil increased by 14 cents, or 0.2%.
Oil rebounds despite sanctions
Although predictions of greater supply from an OPEC+ production hike next month limited gains, oil prices gained Thursday, ending a three-day losing streak and rising from 16-week lows on the potential of further sanctions on Russian petroleum.
By 0116 GMT, Brent oil futures were up 15 cents, or 0.2%, to $65.50 a barrel. At $61.92 a barrel, U.S. West Texas Intermediate oil increased by 14 cents, or 0.2%.
Both Brent and WTI saw losses of almost 1% on Wednesday, with Brent ending at its lowest level since June 5 and WTI since May 30.
Geopolitics Supports Oil Gains
Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a division of Nissan Securities, said, “As WTI approached its $60 support level, buying enthusiasm appeared while heightened geopolitical concerns and rumors of harsher sanctions on Russian oil also gave support.”
Targeting those who are supporting evasion and those who are continuing to boost their imports of Russian oil, the finance ministers of the Group of Seven countries said on Wednesday that they would take action to put further pressure on Russia.
Additionally, the Wall Street Journal said Wednesday that Ukraine would get information from the United States about long-range missile attacks on Russian energy facilities.
Oil Faces Mixed Pressures
According to the WSJ, this will facilitate Ukraine’s attacks on refineries, pipelines, and other infrastructure in an effort to deny the Kremlin oil and income.
However, Nissan’s Kikukawa said that although forecasts of increased production by OPEC+, the Organization of the Petroleum Exporting Countries (OPEC), and affiliated producers impacted on mood, a U.S. government shutdown fueled concerns about the global economy and limited price increases.
Following through on a pledge to use the government shutdown to target Democratic goals, U.S. President Donald Trump‘s administration on Wednesday froze $26 billion for states that lean Democratic.
OPEC+ May Raise Output
As Saudi Arabia looks to regain market share, OPEC+ may agree to boost oil production by up to 500,000 barrels per day in November, which would quadruple the increase for October, according to three people involved with the negotiations.
when would occur at the same time when demand in Asia and the United States begins to wane.
As refining operations and demand cooled last week, U.S. crude oil, gasoline, and distillate stockpiles increased, the Energy Information Administration said on Wednesday.
In contrast to a Reuters poll that predicted a 1 million-barrel increase, crude stockpiles increased by 1.8 million barrels to 416.5 million barrels in the week ending September 26.