On Thursday, oil prices experienced an uptick, breaking a five-day decline, driven by indications of consistent demand in the United States, the leading consumer of oil globally. However, the potential for U.S.-Russian discussions regarding the Ukraine conflict alleviated worries about supply interruptions stemming from additional sanctions.

Brent crude futures experienced an increase of 20 cents, representing a 0.3% rise, reaching $67.09 per barrel by 0039 GMT. Concurrently, U.S. West Texas Intermediate crude was priced at $64.57 per barrel, reflecting an uptick of 22 cents, also a 0.3% increase. Both benchmarks experienced a decline of approximately 1%, reaching their lowest levels in eight weeks on Wednesday, following U.S. President Donald Trump’s comments regarding advancements in negotiations with Moscow.

According to a White House official, Trump may engage in discussions with Russian President Vladimir Putin as early as next week. Meanwhile, the United States is advancing its preparations to implement secondary sanctions, which could extend to China, in an effort to compel Moscow to conclude its military actions in Ukraine. Russia ranks as the second-largest producer of crude oil globally, following the United States. Nevertheless, oil markets received support from a larger-than-anticipated reduction in U.S. crude inventories last week.

The Energy Information Administration reported on Wednesday a decline in U.S. crude oil stockpiles by 3 million barrels, bringing the total to 423.7 million barrels for the week ending August 1. This reduction surpassed analysts’ expectations, which had anticipated a draw of 591,000 barrels according to a Reuters poll.  Inventories decreased as U.S. crude exports increased and refinery operations rose, with utilization in the Gulf Coast, the nation’s largest refining area, and the West Coast reaching their peak levels since 2023.

However, the uncertain dynamics of the negotiations, coupled with the prevailing supply and demand conditions as significant producers ramp up their output, have led to a sense of caution among investors, according to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities. “Uncertainty over the outcome of the US-Russia summit, possible additional tariffs on India and China – key buyers of Russian crude – and the broader impact of U.S. tariffs on the global economy are prompting investors to stay on the sidelines,” said Kikukawa.

“With planned OPEC+’s output increases weighing on prices, WTI will likely remain in the $60-$70 range for the rest of the month,” he stated, referring to the Organization of the Petroleum Exporting Countries and its allies including Russia. In a move that further intensifies the economic strain on Russian oil purchasers, Trump on Wednesday enacted a supplementary 25% tariff on Indian goods, referencing their ongoing imports of Russian oil. The implementation of the new import tax is scheduled to occur 21 days following August 7. Trump also indicated the possibility of announcing additional tariffs on China, akin to the 25% duties previously declared on India concerning its acquisitions of Russian oil.