Oil prices edged higher in Asian trading on Thursday, with Brent crude up 0.4% at $65.88 per barrel and WTI rising 0.3% to $62.13. Markets are awaiting Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, where discussions on a potential Ukraine ceasefire could take place. Traders are watching for the possibility of U.S. sanctions or tariffs on Russia’s key oil buyers, which could tighten supply, though concessions to Moscow might weigh on prices.
Still, weak demand outlooks from both the International Energy Agency (IEA) and the U.S. government, along with forecasts of oversupply in 2025–2026, are pressuring crude. U.S. inventories unexpectedly rose by 3 million barrels instead of the anticipated drawdown, further dampening sentiment. The data suggest demand is slowing as the peak summer driving season in the U.S. winds down. Crude remains on track for its second straight week of steep losses.