Crude oil and gasoline prices surged on Wednesday, reaching a 3-week high as concerns over Russian crude supplies mounted. President Trump’s strong stance against Russia and NATO’s promise of a robust response fueled the rally. Unexpectedly low EIA crude inventories added to the bullish sentiment.

Ukraine’s attacks on Russian refineries and oil infrastructure have disrupted crude exports, tightening global oil supplies. Drone strikes have damaged key Russian facilities, leading to a significant drop in refined-product flows. The ongoing conflict in Ukraine is a key factor supporting higher crude prices.

Iraq’s agreement to resume oil exports from the Kurdish region may add 230,000 bpd to global markets, potentially easing supply concerns. However, reduced crude demand from India and an increase in oil stored on tankers present bearish factors for oil prices.

OPEC+ plans to gradually increase crude production, with a smaller raise of 137,000 bpd in October. The group aims to restore 2.2 million bpd of production by September 2026, contingent on market conditions. The recent EIA report showed unexpected draws in crude and gasoline inventories, supporting prices.

US crude oil production remains near record highs, while the number of active oil rigs has risen slightly. Despite these factors, ongoing geopolitical tensions, supply disruptions, and market uncertainties continue to impact crude oil prices.

Read more at Yahoo Finance: Crude Oil Prices Rally on Russian Tensions and Tighter EIA Inventories