Oil prices extended their gains on Thursday, supported by signs of strong demand in the United States and lingering uncertainty over efforts to end the war in Ukraine. Brent crude futures reached a two-week high in early trading, climbing 41 cents, or 0.61%, to $67.25 a barrel at 0637 GMT. US West Texas Intermediate (WTI) crude futures gained 45 cents, or 0.72%, to $63.16 a barrel. Both benchmarks had risen more than 1% in the previous session.
The boost followed data from the US Energy Information Administration showing crude inventories fell by 6 million barrels last week to 420.7 million barrels, far exceeding expectations of a 1.8 million-barrel draw. Gasoline stocks also dropped by 2.7 million barrels, compared with forecasts for a 915,000-barrel draw, underscoring steady driving demand during the summer travel season. Jet fuel consumption, meanwhile, hit its highest four-week average since 2019. “Crude oil prices rebounded as signs of strong demand in the US boosted sentiment,” said Daniel Hynes, senior commodity strategist at ANZ.
However, Hynes noted that bearish sentiment lingers as traders continue to watch negotiations over war in Ukraine. Market analysts expect oil prices to ease once a peace deal is reached, though the lack of progress has provided support for now. Western sanctions on Russian oil remain in place, and the possibility of tougher measures looms.
Russia has vowed to continue selling crude to willing buyers, including India, despite pressure from the United States. President Donald Trump announced a new 25% tariff on Indian goods starting August 27 in response to India’s Russian crude purchases, while the European Union sanctioned Indian refiner Nayara Energy, backed by Russia’s Rosneft. Despite initial hesitation, Indian refiners have resumed purchases of discounted Russian oil for delivery in September and October.
