2023.03.2910:06:00UTC+00Oil Extends Rally On API Data

Oil prices rose on Wednesday, climbing for a third day running amid supply concerns after a halt to some exports from Iraqi Kurdistan.

Industry data showing a big draw in U.S. crude stockpiles also supported prices.

Benchmark Brent crude futures rose 0.7 percent to $78.72 a barrel, while WTI crude futures were up 1 percent at $73.96.

Supply disruption risks increased after political disputes between Iraq, Iraq's semi-autonomous Kurdish region and Turkey halted exports of some 450,000 barrels of crude per day.

Barclays said any protracted outage of Kurdish exports until the end of the year would imply a $3 a barrel upside to the bank's $92 a barrel Brent price forecast for 2023.

Meanwhile, U.S. crude oil inventories fell by just over 6 million barrels in the week ended on March 24, the American Petroleum Institute (API) data showed on Tuesday, compared with an expected small rise.

Gasoline stockpiles showed big weekly declines while inventories of distillates registered a rise.

The U.S. Energy Information Administration will release its official weekly report later in the session.