Oil prices continued to climb on Thursday, extending gains from the previous session, as confidence in U.S. fuel demand surged following a surprising drop in crude and gasoline inventories, while additional support came from reports suggesting OPEC+ may defer a planned production increase.
As of 2:40 pm AEDT (3:40 pm GMT) Brent crude futures added 35 cents, or 0.5%, to US$72.90 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 37 cents, or 0.5%, reaching $68.98 per barrel.
Both benchmarks gained over 2% on Wednesday, reversing early-week declines of more than 6% due to a reduced risk of escalated conflict in the Middle East.
The U.S. Energy Information Administration (EIA) reported that gasoline stockpiles fell unexpectedly to a two-year low in the week ending October 25, driven by rising demand, while crude inventories saw a surprise decline as imports decreased.
Meanwhile, OPEC+ may postpone its December production increase by at least a month, Reuters reported. The coalition, comprising OPEC members and allies such as Russia, was initially scheduled to raise output by 180,000 barrels per day in December after deferring this increment from October. A decision could emerge as early as next week, ahead of the group’s official meeting on December 1.
In the Middle East, diplomatic efforts appear to be making progress. Lebanon’s prime minister expressed optimism on Wednesday for a ceasefire deal with Israel within days, while Israeli media shared a draft truce agreement outlining a proposed 60-day ceasefire.