Oil extended its upward momentum in Asian markets on Thursday, lifted by a larger-than-expected decline in U.S. crude inventories, while traders monitored potential diplomatic developments between Russia and Ukraine.
As of 21:52 ET (01:52 GMT), Brent crude for October delivery traded 0.5% higher at $67.20 per barrel, while West Texas Intermediate (WTI) rose 0.6% to $63.11 per barrel.
U.S. Crude Inventories Fall Significantly
Crude futures surged nearly 2% on Wednesday after the U.S. Energy Information Administration (EIA) reported a substantial draw in inventories. U.S. crude stocks dropped around 6 million barrels, far exceeding the 1.8 million-barrel decrease predicted by analysts.
The drawdown was fueled by strong export activity and steady refinery operations, reflecting tighter supply conditions amid continued demand. Gasoline inventories also declined by 2.7 million barrels, surpassing expectations, while refinery utilization climbed to 96.6%, highlighting robust refining activity.
Traders interpreted these figures as confirmation that U.S. fuel consumption remains resilient, helping to counterbalance worries about global economic uncertainty. Earlier in the week, the American Petroleum Institute noted a 2.4 million-barrel reduction in crude stocks for the week ending August 15.
Russia-Ukraine Peace Talks in Focus
Market participants are watching for signs of potential progress in Russia-Ukraine negotiations. President Donald Trump reported speaking with Russian President Vladimir Putin following meetings with Ukrainian President Volodymyr Zelenskiy and European leaders at the White House.
Trump suggested that he is organizing a direct discussion between Moscow and Kyiv, possibly followed by a trilateral summit with the United States. Traders are particularly attentive to whether any peace framework could ease Western sanctions on Russian oil exports.
Russia remains a major global oil supplier, but restrictions imposed since the Ukraine conflict continue to limit its exports to key markets.
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