Oil prices ticked higher during Asian trading on Thursday, retracing part of the previous session’s losses as investors assessed fresh United States proposals aimed at ending the war in Ukraine and monitored an impending deadline for sanctions on two of Russia’s largest oil companies.
By 3:35 pm AEDT (4:35 am GMT), Brent crude futures were up 15 cents or 0.3% at $63.67 per barrel, while U.S. West Texas Intermediate crude gained 11 cents or 0.2% to $59.55 per barrel.
Brent and WTI benchmarks fell 2.1% and 2.3%, respectively, on Wednesday.
The move was supported by U.S. inventory data, with the Energy Information Administration (EIA) reporting that crude stockpiles fell 3.4 million barrels, much larger than an expected draw of 600,000 barrels.
Prices were also buoyed by a Reuters report indicating that Washington has urged Kyiv to accept a U.S.-drafted framework to end the conflict with Russia, which would involve ceding territory and relinquishing certain weapons systems, according to two sources familiar with the discussions.
As part of its broader effort to force a resolution to the conflict, the U.S. has imposed sanctions on Rosneft and Lukoil, Russia’s two largest oil producers and exporters.
A key deadline to wind down operations with both firms expires on 21 November.
In response, Rosneft has reportedly reduced its stake in the Kurdistan Pipeline Company - operator of Iraqi Kurdistan’s main export pipeline - to below 50%, a move designed to shield the subsidiary from the impact of U.S. sanctions.
