Oil prices experienced a modest increase on Thursday, driven by larger-than-anticipated reductions in crude oil and fuel inventories in the U.S., the largest consumer of oil globally, which bolstered expectations for consistent demand. Brent crude futures experienced an increase of 13 cents, representing a 0.19% rise, reaching $66.97 per barrel at 0055 GMT, following a 1.6% gain in the preceding session. U.S. West Texas Intermediate (WTI) crude futures experienced an increase of 15 cents, or 0.24%, reaching a price of $62.86, following a rise of 1.4% on Wednesday.

According to the U.S. Energy Information Administration, crude inventories in the United States experienced a decline of 6 million barrels last week, bringing the total to 420.7 million barrels. This figure contrasts sharply with analysts’ forecasts, which anticipated a more modest draw of 1.8 million barrels. According to the EIA, gasoline stocks experienced a decline of 2.7 million barrels, contrasting with the anticipated draw of 915,000 barrels. This suggests a robust demand for driving amid the summer travel season. The data reflects a notable increase in the four-week average for jet fuel consumption, reaching levels not observed since 2019. “Crude oil prices rebounded as signs of strong demand in the U.S. boosted sentiment,” Daniel Hynes, senior commodity strategist at ANZ, stated in a note on Thursday.

Hynes noted that a degree of “bearish sentiment remains evident as traders continue to monitor negotiations to end Russia’s war against Ukraine.” Russia stated on Wednesday that efforts to address security concerns regarding Ukraine without the involvement of Moscow were a “road to nowhere,” as military planners from the U.S. and Europe have initiated discussions on potential post-conflict security guarantees for Ukraine. The protracted negotiations aimed at achieving peace in Ukraine indicate that Western sanctions on Russian oil supply persist unabated. The potential for additional U.S. sanctions and tariffs on purchasers of Russian oil continues to loom over the market landscape.

Russia, however, maintains a firm stance on its commitment to supply crude oil to interested buyers. Russian diplomats in India indicated on Wednesday that the country anticipates continuing its oil exports to India, notwithstanding the cautions issued by the U.S. U.S. President Donald Trump has declared a supplementary tariff of 25% on Indian goods effective August 27, citing their acquisitions of Russian crude as the rationale. The European Union has imposed sanctions on Indian private refiner Nayara Energy, which receives backing from the Russian oil company Rosneft. Indian refiners, having initially retreated from purchasing Russian oil, have now resumed their acquisitions. Officials from state-run Indian Oil and Bharat Petroleum have secured Russian oil for delivery in September and October, taking advantage of the widened discounts.