Oil prices edged higher during Thursday's Asian deals as renewed attacks by Ukraine on Russia’s oil infrastructure suggested possible supply disruptions, while stalled peace negotiations dampened expectations of any near-term agreement that might restore Russian oil flows to global markets.
However, soft underlying fundamentals kept gains in check.
By 3:35 pm AEDT (4:35 am GMT), Brent crude was up 23 cents or 0.4% at $62.90, while US West Texas Intermediate rose 28 cents or 0.5% to $59.23.
The latest strike targeted the Druzhba pipeline in Russia’s central Tambov region, a Ukrainian military intelligence source told Reuters. It marked the fifth attack on the major conduit, which supplies Russian crude to Hungary and Slovakia.
Despite the strike, the pipeline operator and Hungary’s oil and gas company reported that flows continued as normal.
ANZ analysts wrote: “Crude oil gained as talks between Russia and Ukraine fail to deliver a peace deal. The Kremlin said President Putin held useful talks with U.S. representatives Steve Witkoff and Jared Kushner, though a compromise hasn’t yet been reached on the critical issues of territorial control.
"The talks were set against a backdrop of increasing attacks on Russian tankers. Over the past week, four have been attacked, marking an uptick in strikes on its shipping industry. Ship owners have pulled back on sending vessels to the country.”
On the data front, U.S. crude oil inventories rose by 0.574 million barrels in the week ending November 28, 2025, after a 2.774 million barrel increase the previous week, contrary to market expectations of a 0.8 million barrel draw.
The Energy Information Administration (EIA) did not release the full weekly report due to an internal error and has not set a timeline for its publication.
Adding further pressure, Fitch Ratings on Thursday cut its 2025–2027 oil price assumptions, pointing to persistent market oversupply and production growth expected to outpace demand over the medium term.
