Oil prices rise on US stockpile drop, Russian export disruptions

Crude oil prices continued to climb on Wednesday after U.S. industry data showed another drawdown in inventories. The American Petroleum Institute (API) estimated that crude stockpiles fell by 3.8 million barrels in the week to September 19, extending a prior week’s decline of 3.42 million barrels.

As of writing, Brent crude traded at $67.73 per barrel and West Texas Intermediate at $63.47.

Earlier this week, prices slipped briefly after Iraq, Turkey, and the Kurdistan Regional Government announced a deal to restart oil flows through the northern pipeline to Turkey. But renewed uncertainty emerged as operators DNO (Norway) and Genel (UK) demanded repayment assurances for roughly $1 billion in arrears, including $300 million owed to DNO. The dispute has delayed export resumption.

Analyst Emril Jamil of LSEG told Reuters that prices are likely to stay “supported but range-bound,” with Russian fuel export curbs adding to upward pressure.

Meanwhile, Ukrainian drone strikes have disrupted about 1 million barrels per day of Russian refining capacity, according to Energy Aspects. The hit has tightened diesel supply, with tracking firms OilX and Vortexa forecasting flows this month could fall to the lowest level in five years.

Russia has already maintained a gasoline export ban through most of 2025, citing refinery damage and financial strains on fuel stations. Diesel shipments, however, remain unrestricted officially, though refinery outages are curbing supply.