Early on Wednesday in Asian trading, crude prices increased for a third day as concerns over a tightening supply were raised by the suspension of certain exports from Iraqi Kurdistan and as worries about a banking crisis subsided.
Brent crude futures were up 42 cents, or 0.5%, to $79.07 a barrel. To reach $73.79 a barrel, West Texas Intermediate U.S. crude increased by 59 cents or 0.8%.
The price of oil increased after Iraq was compelled to stop exporting 450,000 barrels per day (bpd) of oil through Turkey after an arbitration judgment determined Baghdad's approval was required to ship the oil.
According to a report from Barclays on Tuesday, any extended disruption of Kurdish shipments through the end of the year would result in an increase of $3 per barrel in the bank's prediction for the 2023 Brent price of $92 per barrel.
The news on Monday that First Citizens BancShares Inc. would buy the deposits and loans of the defunct Silicon Valley Bank sparked hope for the future of the banking industry, which has shaken up the stock market.
Support was also provided by a decrease in U.S. crude oil inventories last week.
According to market sources citing American Petroleum Institute data on Tuesday, U.S. crude oil inventories decreased by around 6.1 million barrels in the week ending March 24. While distillate stocks increased by roughly 550,000 barrels, gasoline inventories decreased by about 5.9 million barrels.
While distillate and gasoline inventories were anticipated to decline last week, analysts had predicted an increase in U.S. crude oil stockpiles. On Wednesday at 10:30 a.m. (1430 GMT), the U.S. Energy Information Administration will present its weekly report.
On the supply side, Russian Deputy Prime Minister Alexander Novak stated on Tuesday that Moscow should concentrate on increasing energy exports to supposedly friendly nations and mentioned that Russian oil supply to India showed a 22-fold increase last year.
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