Oil gained 1% on the stalled Russia-Ukraine peace talks and strong US demand
US crude and gasoline stockpiles fell, while demand outlook improved.
Oil prices rose nearly a dollar per barrel on Thursday as Russia and Ukraine blamed each other for the stalled peace process and as earlier US data showed signs of strong demand in the largest oil-consuming country.
Brent crude futures rose 83 cents, or 1.2%, to close at $67.67 per barrel, a two-week high. WTI crude futures rose 81 cents, or 1.3%, to close at $63.52 per barrel.
Both contracts had gained more than 1% in the previous session.
The path to peace in Ukraine remains uncertain, prompting oil investors to remain cautious after a sell-off over the past two weeks driven by hopes that Trump would diplomatically end Russia's war with its neighbor.
Moscow and Kyiv accuse each other of obstructing the peace process. Russia launched a massive airstrike near Ukraine's border with the European Union on Thursday, while Ukraine claimed to have hit a Russian oil refinery.
The uncertainty surrounding the peace talks means the possibility of stricter sanctions against Russia has resurfaced.
Oil prices were also supported by a larger-than-expected decline in U.S. crude oil inventories last week, indicating strong demand.
The U.S. Energy Information Administration (EIA) reported on Wednesday that U.S. crude oil inventories fell by 6 million barrels in the week ending August 15. Analysts had expected a decline of 1.8 million barrels.
These tight domestic inventories contradict the oversupply outlook projected by both the IEA and the EIA for 2026 and challenge investors' overall market expectations.
Investors were also monitoring the Jackson Hole economic conference in Wyoming for signals about a possible Fed rate cut next month. The annual meeting of central bankers begins on Thursday, and Fed Chair Jerome Powell is scheduled to speak on Friday.
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