Brent crude settled at $67.67, up 83 cents (1.2%), while U.S. West Texas Intermediate (WTI) gained 81 cents (1.3%) to close at $63.52. Both benchmarks had already advanced more than 1% in the prior session.
Markets turned cautious as Moscow and Kyiv traded blame for stalled negotiations. Russia launched a major air assault near Ukraine’s EU border, while Kyiv said it struck a Russian refinery — reminders that risks to supply remain live. Analysts said some “geopolitical risk premium” was slowly returning to crude.
Adding support, U.S. government data showed a 6 million-barrel drawdown in crude stocks for the week ended August 15, far exceeding expectations for a 1.8 million-barrel drop. Analysts highlighted stronger refinery demand and exports as key contributors to the decline. The draw stood in contrast with longer-term projections from the IEA and EIA, which both see a market surplus emerging in 2026.
Broader financial markets are now focused on the Jackson Hole economic conference in Wyoming, where investors will parse Fed Chair Jerome Powell’s remarks on Friday for signals of a possible rate cut in September — a move that could further bolster oil demand.