Oil edged higher on US demand signals and Ukraine tensions

Crude prices advanced on Thursday, supported by stronger-than-expected US stockpile draws and renewed geopolitical risks. 

Brent futures settled 83 cents higher at $67.67 a barrel.

West Texas Intermediate gained 81 cents to close at $63.52.

The US Energy Information Administration reported a 6-million-barrel decline in crude inventories last week, far exceeding forecasts of a 1.8-million-barrel draw. Gasoline stocks also fell for a fifth consecutive week, reinforcing signs of resilient consumption.

On the geopolitical front, peace efforts between Russia and Ukraine showed little progress, fuelling concerns of tighter sanctions. Traders added a modest risk premium after Moscow escalated military action near the EU border and Kyiv claimed responsibility for striking a Russian refinery.

Analysts cautioned, however, that the rebound remains constrained. WTI continues to trade within a $62–65 range, while longer-term forecasts from both the IEA and EIA highlight the risk of oversupply into 2026, limiting the scope for sustained rallies.

Written: Aiman Haikal