Brent crude settled at $66.84, up $1.05 (1.6%), while U.S. West Texas Intermediate (WTI) rose 86 cents (1.4%) to close at $63.21. The gains came a day after WTI closed at its lowest since May 30 on optimism that sanctions on Russia could ease if negotiations advance.
The EIA reported a 6 million barrel decline in crude stocks last week, far exceeding analyst forecasts for a 1.8 million barrel draw and API’s estimate of 2.4 million barrels. Analysts pointed to stronger exports and refinery demand as key drivers. “This is a bullish report,” said John Kilduff of Again Capital.
Still, geopolitical uncertainty kept the market choppy. U.S. President Donald Trump conceded that Russian President Vladimir Putin “might not want to make a deal,” even as Washington continues to push for talks involving Ukraine. Russia warned that excluding Moscow from discussions over Kyiv’s future security guarantees was a “road to nowhere.”
The supply side remains fluid. Russia said it will continue supplying crude to India despite U.S. warnings, while Indian refiners have resumed purchases for September and October delivery, encouraged by wider discounts. Meanwhile, Trump has announced an additional 25% tariff on Indian goods from August 27 as punishment for its Russian oil imports.
Analysts at Ritterbusch and Associates noted that daily swings reflect “back and forth” signals from Ukraine negotiations, with traders recalibrating balances between potential sanction relief and continued tightness from strong demand.