Oil prices, supported by signs of strong demand in the US, continued to rise on Thursday
Oil continues to rise on signs of strong demand, while uncertainty surrounding the efforts to end the war in Ukraine is also supporting this trend.
Brent crude futures reached a two-week high in early trading, rising 41 cents, or 0.61%, to $67.25 per barrel at 06:37 GMT. WTI crude futures rose 45 cents, or 0.72%, to $63.16 per barrel.
Both contracts gained more than 1% in the previous session.
The U.S. Energy Information Administration (EIA) reported on Wednesday that U.S. crude inventories fell by 6 million barrels last week to 420.7 million barrels, exceeding survey expectations for a 1.8 million barrel decline.
The EIA reported that gasoline stocks fell by 2.7 million barrels, contrary to expectations for a 915,000-barrel decline, indicating a steady increase in demand during the summer travel season. This was also reflected in the four-week average of jet fuel consumption, which rose to its highest level since 2019.
However, some downward trends are likely to happen while investors continue to monitor Russia's negotiations to end its war against Ukraine. A lack of tangible progress in the negotiations could negatively impact the market. Oil prices may fall once a peace agreement is reached.
While US and European military planners are planning post-conflict security guarantees for Ukraine, Russia said on Wednesday that attempts to resolve security issues without Moscow's participation would be futile.
The protracted peacekeeping efforts in Ukraine, the continued Western sanctions on Russian oil supplies, and the potential for harsher sanctions and tariffs on Russian oil buyers are still impacting market fundamentals.
Meanwhile, Russia remains committed to continuing to supply crude oil to willing buyers. Russian diplomats in India say the country will continue to supply India despite US warnings.
Trump announced that an additional 25% tariff will be imposed on Indian goods starting August 27 due to Russian crude oil purchases. The European Union also imposed sanctions on Nayara Energy, a private Indian refinery backed by Rosneft.
Indian refiners initially abandoned Russian oil purchases, but officials from state-run Indian Oil and Bharat Petroleum have resumed purchases after increasing discounts by purchasing Russia's crude oil for September and October deliveries.
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