Brent crude oil, against which Nigerian crude oil is priced, rose by 41 cents or 0.61% to trade at $67.25 per barrel, their highest level in two weeks. West Texas Intermediate (WTI) crude gained 45 cents or 0.72% to settle at $63.16 per barrel.
The latest data from the U.S. Energy Information Administration (EIA) showed crude inventories dropped by 6 million barrels last week to 420.7 million barrels, larger than the 1.8 million-barrel draw forecast in a Reuters poll.
Gasoline stocks fell by 2.7 million barrels, far exceeding expectations of a 915,000-barrel decline and highlighting resilient driving demand during the peak summer travel season.
The EIA also reported that the four-week average for jet fuel consumption rose to its highest level since 2019, underscoring the strength of U.S. air travel activity.
Daniel Hynes, Senior Commodity Strategist at ANZ, noted that crude prices rebounded primarily on the back of stronger U.S. demand.
However, he cautioned that bearish sentiment persists as traders closely watch developments in Ukraine peace negotiations.
Talks aimed at resolving the war in Ukraine remain stalled, providing additional support to oil prices. Russia warned on Wednesday that Western efforts to establish post-conflict security guarantees for Kyiv without Moscow’s involvement represent a “road to nowhere.”
The deadlock has kept Western sanctions on Russian oil exports in place, maintaining supply risks in global markets. Analysts say any breakthrough in peace talks could pressure prices, but continued delays are likely to support current market strength.
The United States and European Union have intensified pressure on countries purchasing Russian crude. U.S. President Donald Trump announced a 25% tariff on Indian goods effective August 27, citing India’s continued imports of Russian oil.
Additionally, the European Union has sanctioned Nayara Energy, an Indian private refiner backed by Russia’s Rosneft, raising further tensions in energy trade flows.
Despite the measures, Indian refiners including Indian Oil Corporation and Bharat Petroleum have resumed purchases of Russian crude for September and October deliveries after discounts widened, reinforcing Moscow’s ability to find alternative buyers.
Oil prices are expected to remain volatile as the market balances strong U.S. consumption with geopolitical uncertainty.
Analysts project that sustained demand in the U.S. could keep Brent above $67 in the near term, though progress in Ukraine negotiations or escalated sanctions could quickly alter sentiment.
