Oil prices rose slightly, extending gains from the previous day, as a larger-than-expected drop in U.S. oil inventories signaled steady demand, while investors remained cautious about a ceasefire between Iran and Israel and stability in the Middle East, UNN writes, citing Reuters.
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Brent crude futures rose 15 cents, or 0.2%, to $67.83 a barrel at 03:30 GMT (06:30 Kyiv time). U.S. West Texas Intermediate (WTI) crude rose 20 cents, or 0.3%, to $65.12 a barrel.
Both benchmarks rose nearly 1% on Wednesday, recovering from losses earlier in the week after data showed steady demand in the U.S.
"Some buyers prefer strong demand, as indicated by the drop in inventories in the weekly U.S. statistics," said Yuki Takashima, an economist at Nomura Securities.
"But investors remain nervous, seeking clarity on the status of the ceasefire between Iran and Israel," he said, adding that market attention is now shifting to OPEC+ production levels.
Takashima predicts that WTI is likely to return to the $60-$65 range, the level before the conflict.
Analysts at ANZ said that with the de-escalation of the conflict between Iran and Israel, market attention has returned to fundamentals and pointed to data showing that U.S. oil inventories are falling for the fifth week in a row.
"U.S. government data showed that the U.S. driving season is in full swing after a slow start," ANZ analysts said in a note.
U.S. oil and fuel inventories fell in the week to June 20, amid rising refining activity and demand, the Energy Information Administration (EIA) said on Wednesday.
Crude oil inventories fell by 5.8 million barrels, the EIA said, beating analysts' expectations in a Reuters poll, which forecast a decline of 797,000 barrels. Gasoline inventories unexpectedly fell by 2.1 million barrels, compared with forecasts of 381,000 barrels, amid a rise in gasoline deliveries, a measure of demand, to their highest level since December 2021.
On Saturday, Igor Sechin, chairman of Russia's largest oil producer Rosneft, said that OPEC+, which brings together the Organization of the Petroleum Exporting Countries and allies, including Russia, may accelerate production growth by about a year compared to the initial plan.
Meanwhile, U.S. President Donald Trump welcomed the quick end to the war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions in talks with Iranian officials next week.
Trump also said on Wednesday that the U.S. has not abandoned maximum pressure on Iran, including restrictions on Iranian oil sales, but has signaled a possible easing of measures to help the country recover.