Oil Prices Ease After Seven-Week Highs Amid U.S. Inventory Draw and Russia Tensions

Oil prices retreated slightly in Asian trading on Thursday after reaching seven-week highs, as markets weighed an unexpected drop in U.S. crude inventories against rising geopolitical risks tied to Russia. As of 21:23 ET (01:23 GMT), Brent crude futures for November delivery slipped 0.3% to $69.09 per barrel, while West Texas Intermediate (WTI) crude fell 0.4% to $64.72 per barrel.

The pullback followed strong gains in the previous session, when both benchmarks surged more than 2% after the U.S. Energy Information Administration (EIA) reported a surprise draw in oil stockpiles. According to the EIA, U.S. crude inventories fell by 607,000 barrels in the week ending September 19, defying analyst forecasts for a build of around 800,000 barrels. Gasoline inventories dropped by 1.1 million barrels to 216.6 million, while distillate fuel supplies, including diesel and heating oil, declined by 1.7 million barrels to 123 million. The declines were attributed to stronger refinery runs and a modest uptick in demand.

Beyond inventory data, geopolitical tensions remain a key driver of oil markets. U.S. President Donald Trump delivered a sharper warning to European nations over reliance on Russian oil during his address at the United Nations, raising the prospect of new sanctions that could target Russia’s energy exports. Although no immediate measures were announced, the hawkish rhetoric heightened fears of supply disruptions. Recent Ukrainian strikes on Russian energy infrastructure have also fueled concerns of reduced Russian oil flows, keeping a risk premium in place.

While supply-side pressures and geopolitical uncertainty continue to support prices, profit-taking after sharp gains limited further upside in Asian trading. Market watchers are closely monitoring U.S. policy signals and developments in Russia, with expectations that ongoing tensions could maintain volatility in crude markets.