Crude oil and gasoline prices settled mixed on Wednesday, with a build in crude supplies at Cushing undercutting oil prices. Gasoline prices rose as EIA crude inventories and gasoline supplies fell more than expected. The decline in the dollar index and the US-Japan trade agreement supported energy prices.

Iraq plans to boost crude exports from its northern Kurdish region through the Iraq-Turkey pipeline, with exports expected to resume soon. Kurdistan aims to supply Iraq’s crude market with 230,000 bpd once exports resume. Iraq is the second-largest oil producer in OPEC.

The European Union’s approval of sanctions on Russian oil boosted crude prices, with restrictions on Russian petroleum and sanctions on Russian ships. OPEC+ agreed to increase crude production by 548,000 bpd starting August 1, with potential future increases to penalize overproducing members like Kazakhstan and Iraq.

OPEC+ is considering a pause in further production increases from October amid concerns about a global oil demand slowdown. Inventories are accumulating at a rate of 1 million bpd, leading to a potential surplus by Q4-2025. A decrease in crude oil stored on tankers is bullish for oil prices, signaling lower global supply.

The weekly EIA report showed mixed results, with distillate stockpiles rising unexpectedly and crude supplies at Cushing increasing. However, crude inventories fell more than expected, and gasoline supplies also saw a larger draw. US crude oil production slightly declined, while active US oil rigs hit a new 3.75-year low.

Read more at Yahoo Finance: Crude Prices Finish Slightly Lower on a Mixed EIA Inventory Report