Oil prices rise on larger-than-expected drop in US oil stocks

By Zeynep Beyza Kilic

ANKARA (AA) - Oil prices increased on Wednesday with data showing larger-than-expected drop in US crude stocks, further pressuring already tight global market.

International benchmark Brent crude cost $106.39 per barrel at 0615 GMT for a 1.35% gain after closing the previous session at $104.97 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $103.62 per barrel at the same time for a 1.18% increase after the previous session closed at $102.41 a barrel.

Crude oil stocks in the US fell by 3.4 million barrels last week, according to data by the American Petroleum Institute on Tuesday. The expectation was a decrease of 1.1 million barrels in oil inventories.

Additionally, prices rose after the European Union announced that it is planning new sanctions against Russia, including a ban on oil imports.

Meanwhile, European Commission President Ursula von der Leyen on Wednesday proposed an oil embargo on Russia as she presented the details of the bloc’s sixth sanctions package targeting Moscow for the war in Ukraine.

Investors are also awaiting crude oil supply data from the US Energy Information Administration, due later in the day.

Additionally, the Organization of the Petroleum Exporting Countries and allies (OPEC+) will hold a virtual meeting on Thursday to discuss steps to alleviate supply concerns.