Oil prices declined in Asian trading on Thursday after U.S. government data showed a much larger-than-expected build in crude inventories, while progress in U.S.-backed peace efforts between Russia and Ukraine fueled concerns that additional Russian supply could return to the global market.
As of 02:19 GMT, Brent crude slipped 0.25% to $62.84 per barrel, while WTI fell 0.4% to $58.40 per barrel. Both benchmarks had gained over 1% on Wednesday amid growing expectations of a Federal Reserve rate cut next month.
According to the EIA, U.S. crude inventories rose by 2.8 million barrels last week—well above forecasts for a modest increase—while gasoline and distillate stocks also climbed, suggesting weaker fuel demand. Analysts attributed the rise mainly to a sharp drop in exports and higher imports.
At the same time, progress in Washington’s diplomatic push for a Ukraine peace deal added to market pressure. Kyiv said it was “open” to a U.S.-drafted ceasefire framework, and U.S. envoy Steve Whitkopf is expected to visit Moscow soon. A potential agreement could ease sanctions and allow more Russian barrels to flow into an already oversupplied market.
Trading volumes are expected to remain light due to the U.S. Thanksgiving holiday, with attention turning to the upcoming OPEC+ meeting this weekend, where producers are widely expected to keep output unchanged.