Oil prices edged upward on Thursday after the United States reported a larger-than-expected drop in crude inventories, while ongoing diplomatic discussions surrounding the Russia-Ukraine conflict added new layers of uncertainty to global supply projections.
Brent crude traded at $63.19 per barrel, a slight gain from Wednesday’s closing price of $63.15. Similarly, US West Texas Intermediate (WTI) rose to $59.33 per barrel, up from $59.28 in the previous session.
New figures released by the US Energy Information Administration (EIA) showed commercial crude inventory levels down by around 3.4 million barrels last week, far surpassing market forecasts of a 600,000-barrel decline. Analysts attributed the steep drawdown to accelerated refinery activity and sustained export demand. However, a simultaneous increase in gasoline stocks raised questions about domestic usage trends.
Geopolitical factors also contributed to market volatility. Fresh diplomatic efforts aimed at ending the Russia-Ukraine war heightened speculation that a peace pathway could pave the way for the removal of sanctions on Russian crude, thereby expanding global supply. This possibility has continued to exert downward pressure on prices despite the recent rally.
US Output Trends
According to the EIA, US crude oil production slipped by 28,000 barrels per day to 13.83 million bpd for the week ending December 14. During the same period, US crude imports surged by 729,000 bpd to 5.95 million bpd, while exports grew by 1.34 million bpd to 4.16 million bpd.
In its Short-Term Energy Outlook published on November 12, the EIA estimated that US oil production will average 13.59 million bpd in 2025, reflecting expectations for continued output strength.
