Oil prices climbed on Thursday, supported by a sharper-than-expected decline in US crude inventories, signaling robust demand in the world’s largest oil consumer. However, market sentiment remained cautious amid lingering uncertainties over the Iran-Israel ceasefire and broader Middle East stability.
International benchmark Brent crude rose by 2.3% to $66.91 per barrel at 9:50 a.m. local time (0650 GMT), up from $66.41 in the previous session. Similarly, US benchmark West Texas Intermediate (WTI) gained 2.3%, trading at $64.94 per barrel compared to $64.50 at the prior close.
Data from the US Energy Information Administration (EIA) showed that commercial crude inventories fell by 5.8 million barrels last week to 415.1 million barrels, marking the fifth consecutive weekly decline. Analysts had forecast a smaller drawdown of around 1.2 million barrels. Gasoline inventories also dropped by 2.1 million barrels to 227.9 million barrels during the same period.
“The sustained inventory drawdowns in the US have prompted some buyers to position for continued strong demand, but uncertainty remains over the Iran-Israel ceasefire,” analysts noted.
Attention is also shifting toward production decisions by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+. On Saturday, Igor Sechin, CEO of Russia’s Rosneft, indicated that OPEC+ could advance its planned production increases by nearly a year.
While tensions between Iran and Israel appear to be easing, markets are refocusing on demand fundamentals and supply strategies. US President Donald Trump welcomed the de-escalation, noting that upcoming talks with Iranian officials may address calls for Tehran to halt its nuclear activities. He reaffirmed that the US “maximum pressure” campaign, including restrictions on Iranian oil exports, remains in effect but hinted at potential flexibility to support Iran’s reconstruction efforts.
