Oil prices extended gains on Thursday, supported by strong demand signals in the United States and continued uncertainty around the Ukraine war.
Brent crude futures rose 41 cents, or 0.61%, to $67.25 a barrel at 0637 GMT, reaching a two-week high. U.S. West Texas Intermediate (WTI) crude futures climbed 45 cents, or 0.72%, to $63.16 a barrel. Both benchmarks had gained over 1% in the previous session.
Fresh data from the U.S. Energy Information Administration (EIA) showed a sharp drawdown in crude stocks. Inventories fell by 6 million barrels last week to 420.7 million barrels, compared with expectations for a 1.8 million-barrel decline. Gasoline stocks dropped 2.7 million barrels, far more than forecasts for a 915,000-barrel draw, pointing to robust driving demand during the summer season. Jet fuel consumption also surged, with the four-week average reaching its highest level since 2019.
“Crude oil prices rebounded as signs of strong demand in the U.S. boosted sentiment,” said Daniel Hynes, senior commodity strategist at ANZ. He warned, however, that bearish sentiment remains as traders monitor peace negotiations in Ukraine.
Analysts believe a peace deal with Russia could trigger lower oil prices, but the lack of progress continues to support the market. On Wednesday, Russia dismissed Western talks on Ukraine’s security guarantees without Moscow’s participation as a “road to nowhere.”
The prolonged conflict ensures that Western sanctions on Russian oil remain in place, while the possibility of tougher sanctions and new tariffs continues to loom.
Despite U.S. warnings, Russia says it will keep supplying crude to buyers such as India. Russian diplomats in New Delhi confirmed shipments will continue. In response, U.S. President Donald Trump announced a 25% tariff on Indian goods starting August 27 due to the country’s continued Russian crude purchases.
The European Union also sanctioned Indian private refiner Nayara Energy, which is partly owned by Russian oil giant Rosneft. While Indian refiners had paused Russian imports earlier, state-run Indian Oil and Bharat Petroleum (BPCL) have resumed purchases for September and October delivery, taking advantage of steeper discounts.
