Slight Increase in Oil Prices Amid Expectations of U.S. Inventory Decline

SadaNews - Oil prices rose slightly after an industry report showed a decline in crude inventories in the United States for the first time in four weeks, while U.S. President Donald Trump reiterated that India will reduce its purchases of Russian energy.

Brent crude traded above $61 a barrel, up 0.5%, while West Texas Intermediate rose closer to $58.

Data from the "American Petroleum Institute" indicated that U.S. crude oil inventories fell by 3 million barrels last week, while fuel stocks, including gasoline, also decreased. Official government data is set to be released later on Wednesday.

Meanwhile, Trump reiterated for the second consecutive week that he spoke with Indian Prime Minister Narendra Modi about reducing India's imports of Russian oil. The Indian embassy did not respond to a request for comment, while Indian refiners have previously indicated their intention to cut purchases without completely stopping them.

Global Supply Overhang Pressuring Prices

Oil continues to trend towards recording a third consecutive monthly loss, as indicators of a surplus in the market put pressure on prices, although this has provided an opportunity for the Trump administration to buy crude for the strategic reserve. The United States plans to purchase one million barrels for delivery in December and January.

Natasha Kaneva, head of global commodities strategy at "J.P. Morgan Chase", said in an interview with Bloomberg Television: "There are plenty of supplies. The supply is growing at a pace that exceeds demand by two and a half times."