Oil Prices Tick Higher After Previous Sell-Off, Supported by U.S. Crude Dra

Oil prices inched up on Thursday, recovering slightly from the prior session’s sharp losses, as a larger-than-expected drop in U.S. crude inventories helped offset concerns that a potential U.S.-backed peace push in the Russia-Ukraine war could add supply to an already well-stocked market.

Brent crude rose 0.25% to $63.67, while WTI gained 0.29% to $59.61 by 0338 GMT, after both benchmarks slid more than 2% on Wednesday following reports that Washington urged Ukraine to consider a draft framework to end the war.

Fears of sanctions being lifted on Russian oil — potentially unleashing more supply — pressured prices, though ING analysts noted Ukraine is unlikely to accept a deal seen as favouring Moscow.

Supporting the market, U.S. crude inventories fell 3.4 million barrels, far exceeding the expected 603,000-barrel draw, amid strong refining demand and higher exports. However, gasoline and distillate stockpiles rose for the first time in over a month, signalling softer fuel consumption.

Traders are also watching the Nov. 21 deadline for companies to wind down business with Rosneft and Lukoil, both under U.S. sanctions.