Oil prices climbed on Thursday, snapping a five-day losing streak, as strong consumption in the United States—the world’s largest oil consumer—helped offset concerns over potential supply disruptions. Hopes for progress in U.S.-Russia talks over the Ukraine conflict also tempered fears of additional sanctions tightening global supplies.
By early Asian trading, Brent crude rose 20 cents, or 0.3%, to $67.09 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 22 cents, or 0.3%, to $64.57. This recovery came after both benchmarks hit eight-week lows on Wednesday, falling about 1% following remarks from President Donald Trump suggesting positive momentum in negotiations with Moscow.
A White House official indicated Trump could meet Russian President Vladimir Putin as early as next week. However, Washington is still preparing potential secondary sanctions—including measures targeting China—to pressure Moscow to end the war in Ukraine. Russia remains the world’s second-largest oil producer, behind the U.S.
Supporting prices, the Energy Information Administration reported a larger-than-expected draw in U.S. crude inventories. Stockpiles fell by 3 million barrels to 423.7 million in the week ending August 1, far exceeding analyst forecasts of a 591,000-barrel decline. The drop was fueled by increased crude exports and higher refinery utilization rates, particularly in the Gulf Coast and West Coast regions, which hit their highest levels since 2023.
Despite these bullish signals, market sentiment remains cautious. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, noted that uncertainty over the U.S.-Russia summit, possible new tariffs on India and China—both major buyers of Russian oil—and the global economic impact of U.S. trade measures are prompting investors to hold back.
“With planned OPEC+ production increases weighing on prices, WTI is likely to stay within the $60–$70 range for the rest of the month,” Kikukawa said, referring to the Organization of the Petroleum Exporting Countries and its allies, including Russia.
Adding further pressure on Russian crude buyers, Trump announced a 25% tariff on Indian goods, citing India’s continued purchases of Russian oil. The new duties will take effect 21 days after August 7. Trump also signaled possible similar tariffs on China.
