Oil prices extended their gains for a third straight session on Thursday, driven by drawdowns in U.S. gasoline and distillate inventories and ongoing supply concerns in Russia. Brent crude settled up 44 cents (0.58%) at $76.48 per barrel, while WTI rose 32 cents (0.44%) to $72.57 for March delivery. The more-actively traded April WTI contract gained 0.35% to $72.50 per barrel.
U.S. crude stockpiles rose slightly more than expected, but gasoline and distillate inventories fell, according to the EIA. Analyst Giovanni Staunovo (UBS) noted that despite the crude build, the fuel drawdowns kept total inventories flat, supporting prices.
Geopolitical tensions remained a key driver, as Russia launched attacks on Ukrainian gas infrastructure, damaging production facilities. Meanwhile, Russian Caspian Pipeline Consortium (CPC) oil flows remained reduced by 30-40% following Ukrainian drone strikes earlier in the week.
On the other hand, the potential resumption of oil flows from Iraq’s Kurdistan region could offset some of these supply risks. Turkey, which hosts the Ceyhan port for loading Iraqi Kurdistan oil, had yet to receive confirmation from Iraq regarding the restart. If resumed, this could add 300,000 bpd to global supply.
Macroeconomic concerns also weighed on the market, as analysts warned that Trump’s proposed import tariffs—such as potential 25% duties on car imports—could weaken the global economy and reduce fuel demand. Bjarne Schieldrop, chief commodities analyst at SEB, noted that the U.S. administration’s stance on trade could disrupt the existing global free-trade structure, raising concerns over oil consumption in Europe and China.
Despite these pressures, oil prices remained supported by supply risks from Russia and expectations of steady demand, with market participants closely watching upcoming OPEC+ decisions and U.S. economic data for further direction.