Oil prices edged higher during Asian trade on Thursday, extending gains of around 0.6% after a larger-than-expected draw in United States crude inventories reinforced confidence in firm demand.
Meanwhile, investors remained watchful of the fragile ceasefire between Iran and Israel and its implications for regional stability.
By 2:55 pm AEST (4:55 am GMT), Brent crude futures were up 25 cents or 0.4% at US$67.93 per barrel, while U.S. West Texas Intermediate (WTI) rose 29 cents or 0.5% to US$65.21.
Both benchmarks had risen nearly 1% on Wednesday, rebounding from early-week losses after government data indicated a notable increase in U.S. fuel consumption.
“Easing tension in the Middle East saw the market return its focus to fundamentals,” ANZ analysts noted.
The U.S. Energy Information Administration (EIA) reported on Wednesday that crude oil inventories fell by 5.8 million barrels in the week to 20 June, significantly exceeding analysts' expectations for a draw of just 750,000 barrels.
Gasoline stocks also defied forecasts, falling by 2.1 million barrels compared with predictions for a build of 250,000 barrels. Gasoline supplied - a proxy for consumer demand - climbed to its highest level since December 2021.
On the geopolitical front, U.S. President Donald Trump praised the rapid de-escalation of hostilities between Iran and Israel and said Washington would seek assurances from Tehran to halt its nuclear ambitions in upcoming diplomatic talks.
Meanwhile, at a press conference on Wednesday, Trump also stated that the U.S. had not abandoned its “maximum pressure” campaign on Iran, noting that U.S. sanctions have had limited impact on curbing China's purchases of Iranian oil.
