02:45 PM EDT, 08/06/2025 (MT Newswires) -- West Texas Intermediate (WTI) crude oil fell for a fifth-straight session on Wednesday even as a report showed a larger than expected drop in U.S. inventories amid strong summer demand and U.S. President Donald Trump issued an executive order to impose 50% secondary sanctions on India for buying Russian oil, effective Aug.27.

WTI crude oil for September delivery closed down US$0.81 to settle at US$64.35 per barrel, the lowest since June 9, while October Brent oil was last seen down US$0.82 to US$66.82.

In its weekly survey, the Energy Information Administration reported U.S. commercial oil inventories fell by three-million barrels last week, well below the consensus estimate for a 0.6-million barrel drop among analysts polled by Reuters.

The report shows strong demand but comes as supply is on the rise, with OPEC on the weekend agreeing to end the return of 2.2-million barrels per day of production cuts with a final 548,000 bpd tranche of supply to market in September, even as the global economy slows amid U.S. tariff wars. However threatened U.S. secondary sanctions on buyers of Russian oil are countering some supply worries.

"Crude prices are staging a small rebound following a four-day slump, with Trump's threat about secondary sanctions on Russian importers of oil receiving some attention despite reports that Russia is considering offering him an olive branch. Overall, the tariff rollouts, softening US economic data, and rising OPEC+ production may curb any fresh upside attempts," Saxo Bank noted.