Oil prices ticked up on Thursday, building on the previous day’s gains after a larger-than-expected drawdown in U.S. crude stocks signaled strong demand. However, investor caution surrounding the Iran-Israel ceasefire and broader Middle East stability kept markets from rallying sharply.
As of 0330 GMT, Brent crude futures rose 15 cents (0.2%) to $67.83 per barrel, while U.S. West Texas Intermediate (WTI) gained 20 cents (0.3%) to $65.12 per barrel. Both benchmarks had climbed nearly 1% on Wednesday, rebounding from early-week losses.
The recovery was buoyed by data showing U.S. crude oil inventories fell for a fifth consecutive week, reflecting resilient domestic demand.
“Some buyers are favouring solid demand indicated by falling inventories in U.S. weekly statistics,” said Yuki Takashima, economist at Nomura Securities.
Still, uncertainty over the Iran-Israel ceasefire continues to weigh on sentiment.
“Investors remain nervous, seeking clarity on the status of the Iran-Israel ceasefire,” Takashima added, noting that market focus is gradually shifting to OPEC+ production levels.
He also forecast that WTI prices may settle back into the $60–$65 range, their levels before recent geopolitical tensions.
Meanwhile, analysts at ANZ echoed the sentiment, saying the de-escalation of conflict has brought market focus back to fundamentals, particularly U.S. demand trends and OPEC+ supply strategy.
