Benchmark Brent crude futures gained by 28 cents to $67.12 per barrel, while U.S. West Texas Intermediate crude futures rose by 0.5% to just above $63 per barrel at around midnight ET.
Oil prices gained in Asia trading on Thursday after a large drawdown of crude oil inventories in the U.S. raised optimism around fuel demand in the world’s largest economy.
Benchmark Brent crude futures gained by 28 cents to $67.12 per barrel, while U.S. West Texas Intermediate crude futures rose by 0.5% to just above $63 per barrel at around midnight ET. Both contracts had gained over 1% in the previous session.
According to U.S. Energy Information Administration data, U.S. crude inventories declined by 6 million barrels by 420.7 million barrels last week, which was higher than industry estimates of a 2.4 million barrels drawdown. At present levels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
Gasoline stockpiles fell by 2.7 million barrels, which was higher than the 915,000-barrel decline forecasted by analysts, according to a Reuters News report. The EIA noted that gasoline inventories are 1% below the five-year average.
Retail sentiment on Stocktwits about the United States Oil Fund was in the ‘bearish’ territory at the time of writing.
Separately, Russia took aim at the efforts of the European countries to ensure security guarantees for Ukraine after the three-and-a-half-year-old conflict ends. During a press conference, Russian Foreign Minister Sergei Lavrov noted that any peace endeavors without Moscow are a “road to nowhere.”
While Russia’s oil is still finding buyers despite Western sanctions, the threat of further punitive measures by the United States continues to linger. Several officials of the Trump administration have criticized India for its purchases of Russian oil over the past few days, with Treasury Secretary Scott Bessent noting that some of India’s wealthiest families have benefited from the trade.
A Russian diplomat in New Delhi said India will continue to buy Russian oil after reports stated that several Indian refiners have placed orders for Ural crude.
Investors are also eyeing Federal Reserve Chair Jerome Powell’s comments on Friday at Jackson Hole, Wyoming, which would indicate whether the U.S. central bank is weighing a interest rate cut in September.
Minutes from July’s Federal Open Market Committee (FOMC) meeting showed that Federal Reserve officials remain worried about President Donald Trump’s tariffs driving up inflation, while some also expressed concerns about the labor market.
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