Oil prices ticked higher in Asian trading on Thursday, recovering slightly from sharp losses in the previous session as traders weighed potential supply risks from U.S.-led peace efforts in Ukraine against a larger-than-expected draw in U.S. crude inventories.
Brent crude rose 0.25% to $63.67 a barrel, while WTI gained 0.29% to $59.61 a barrel.
Reports suggested Washington is encouraging Kyiv to consider a framework to end the war—an outcome that could ease sanctions on Russian oil exports and bring more barrels back to an already oversupplied market. Analysts at ING said Ukraine was unlikely to agree to such terms but noted that the move reduced expectations for tougher sanctions ahead.
Data from the U.S. Energy Information Administration (EIA) showed crude inventories fell by 3.4 million barrels last week, far exceeding forecasts for a 603,000-barrel drop. Refinery activity and strong export demand contributed to the draw, though gasoline and distillate stocks rose for the first time in over a month, signaling softer fuel consumption.
Traders are now watching the upcoming November 21 deadline, when companies will be barred from transacting with Rosneft and Lukoil under new U.S. sanctions. Analysts warn this could further reshape global oil flows and heighten short-term volatility.