TOKYO: Oil prices inched higher, extending gains from the previous day as a larger-than-expected draw in U.S. crude stocks signalled firm demand, while investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.
Brent crude futures rose 15 cents, or 0.2%, to $67.83 a barrel by 0330 GMT. U.S. West Texas Intermediate (WTI) crude gained 20 cents, or 0.3%, to $65.12 a barrel.
Both benchmarks climbed nearly 1% on Wednesday, recovering from early-week losses after data showed resilient U.S. demand.
“Some buyers are favouring solid demand indicated by falling inventories in U.S. 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 U.S. crude oil inventories fell for a fifth straight week.
