WTI extends gains to near $79.50 on decreased US stockpiles, fear over supply disruptions

West Texas Intermediate (WTI) oil prices continue their upward trend for the second consecutive session, climbing to nearly $79.50, up by approximately 0.30% per barrel during Thursday's Asian trading hours.

The surge in oil prices is attributed to a surprise decrease in US Crude stockpiles, suggesting a strengthening demand. Furthermore, concerns over potential supply disruptions following Ukrainian attacks on Russian refineries have further bolstered oil prices.

According to data from the US Energy Information Administration (EIA), US Crude Oil Stocks Change decreased by 1.536 million barrels for the week ending March 8, contradicting the anticipated rise of 1.338 million barrels. This decline, was the first in seven weeks.

The API Weekly Crude Oil Stock also saw an unexpected decrease of 5.521 million barrels in the previous week, compared to the forecasted increase of 0.400 million barrels and the previous week's 0.423 million barrels.

Ukrainian drone attacks targeting Russian refining facilities resulted in a fire at Rosneft's largest refinery. According to Reuters, two sources revealed that the refinery had to close two primary oil refining units as a result. Following the attack on Lukoil's refinery in Nizhny Novgorod on Tuesday, Ukraine also targeted refineries in the Rostov and Ryazan regions.

The Organization of the Petroleum Exporting Countries (OPEC) expressed appreciation for the remarks made by the International Energy Agency (IEA), emphasizing the importance of oil security. The IEA advised industrialized nations, highlighting recent tensions between the IEA and OPEC on issues such as long-term demand and the necessity for investment in new supplies.