Oil prices traded slightly higher during Asian deals on Thursday, supported by evidence of robust United States demand after government data showed steep withdrawals from crude and fuel stockpiles.
By 2:55 pm AEST (4:55 am GMT) Brent crude futures rose 27 cents or 0.4% to US$67.11 per barrel, while U.S. West Texas Intermediate (WTI) crude added 86 cents or 1.4% to $63.21.
Among data releases, U.S. crude inventories dropped by 6 million barrels last week to 420.7 million barrels, the Energy Information Administration reported, far exceeding analysts’ expectations of a 1.3 million-barrel draw.
Gasoline stocks also fell sharply, down 2.7 million barrels compared with forecasts for an 800,000-barrel draw, pointing to strong demand during the peak summer driving season.
“Crude oil prices rebounded as signs of strong demand in the U.S. boosted sentiment,” Daniel Hynes, senior commodity strategist at ANZ, said in a note Thursday.
Still, he added, “While the data was mildly bullish, it wasn’t enough to change the broader mood in the market. Bearish sentiment remains evident as traders continue to monitor negotiations to end Russia’s war against Ukraine. The U.S. and military officials from NATO discussed security measures for Ukraine to help forge a peace agreement.”
Geopolitical risks remain in focus. Russia said Wednesday that attempts to resolve security issues around Ukraine without its involvement were a “road to nowhere”, as U.S. and European officials weighed post-conflict security guarantees for Kyiv.
With peace talks stalled, Western sanctions on Russian oil supplies remain in force, while further U.S. penalties on buyers of Russian crude loom.
Despite the sanctions backdrop, Russian officials signalled they would maintain shipments to willing customers. Diplomats in New Delhi said Russia expects to continue oil supplies to India even as Washington applies pressure.
U.S. President Donald Trump recently announced a 25% tariff on Indian goods starting 27 August in response to India’s Russian oil purchases.
Meanwhile, the European Union has sanctioned Nayara Energy, an Indian private refiner backed by Rosneft.
