SINGAPORE — Oil prices inched higher on Thursday, extending gains from the previous day as a larger-than-expected draw in US crude stocks signalled firm demand, while investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.
Brent crude futures rose 53 cents, or 0.8 percent, to $68.21 a barrel by 0630 GMT. US West Texas Intermediate (WTI) crude gained 56 cents, or 0.9 percent, to $65.48 a barrel.
Both benchmarks climbed nearly 1 percent on Wednesday, recovering from early-week losses after data showed resilient US demand.
“Some buyers are favoring solid demand indicated by falling inventories in US weekly statistics,” said Yuki Takashima, economist at Nomura Securities.
“But investors remain nervous, seeking clarity on the status of the Iran-Israel ceasefire,” he said, adding that market attention is now shifting to OPEC+ production levels.
Takashima forecast WTI would likely return to the $60-$65 range, its pre-conflict levels.
ANZ analysts said that with the de-escalation of conflict between Iran and Israel, the market’s focus had returned to fundamentals, and pointed to data showing US crude oil inventories fell for a fifth straight week.
“US government data showed the US driving season is in full swing after a slow start,” ANZ analysts said in a note.
