Oil slips on profit-taking after seven-week high despite U.S. stock draw

September 25, 2025 (MLN): Oil prices slipped as investors took profits following a surge to a seven-week peak in the previous session, which had been driven by an unexpected decline in U.S. crude stockpiles and worries that Ukraine’s strikes on Russia’s energy facilities might threaten supply.

Brent crude futures went up by $0.27, or 0.39%, to $69.04 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.39, or 0.60%, to $64.60 per barrel by [3:00 pm] PST.

“Crude oil rebounded from the lower end of its recent trading band earlier this week and is now moving back toward the upper boundary.

Today’s dip likely reflects some light profit-taking,” said Tony Sycamore, market analyst at IG.

The market found support after U.S. crude inventories unexpectedly fell by 607,000 barrels during the week ending September 19, according to the Energy Information Administration (EIA) on Wednesday.

This decline ran counter to analysts’ forecasts in a Reuters poll, which had projected a 235,000-barrel build, though it was smaller than the 3.8m barrel draw reported by the American Petroleum Institute (API) a day earlier.

Prices also drew strength from concerns about supply disruptions linked to the ongoing Russia–Ukraine war.

Ukraine has intensified drone strikes on Russian energy assets in recent weeks, targeting refineries and export terminals in an effort to cut Moscow’s export revenues.

The attacks have coincided with shortages of certain fuel grades in Russia, raising the possibility of export restrictions if necessary.

Still, Haitong Securities noted that oil’s resilience is not solely due to geopolitical risks. In a report, the firm said the absence of significant downward pressure from supply demand fundamentals has also helped keep prices supported.

While peak seasonal demand is tapering off, the anticipated oversupply pressures have yet to materially weigh on the market.

Adding to this outlook, J.P. Morgan reported Wednesday that global oil demand growth so far this year is averaging 800,000 barrels per day, compared with its estimate of 830,000 bpd.

The bank said global oil consumption has averaged 104.4 million bpd so far in September, consistent with its projections.

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