Oil prices declined on Thursday following an unexpected rise in US crude inventories and signs of progress in Russia-Ukraine diplomacy, which eased supply concerns.
International benchmark Brent crude was trading at $62.35 per barrel, down 0.1% from Wednesday’s close of $62.42. The US benchmark West Texas Intermediate (WTI) also slipped 0.08% to $58.44, compared with $58.49 in the previous session.
The US Energy Information Administration (EIA) reported that commercial crude inventories increased by 2.8 million barrels last week to 426.9 million barrels, defying market expectations for a 1.3 million-barrel draw.
US Strategic Petroleum Reserves, which are not included in commercial inventories, rose by 500,000 barrels to 411.4 million barrels. Gasoline stocks also climbed by 2.5 million barrels to 209.9 million barrels, reinforcing perceptions of soft demand in one of the world’s largest oil consumers.
The data added downward pressure on prices by signalling weaker consumption and the potential for further stock builds. On the geopolitical front, optimism over renewed diplomacy supported expectations that some Russian supply could return to the market.
Kremlin adviser Yury Ushakov said US President Donald Trump’s special envoy Steve Witkoff will visit Moscow next week, boosting hopes for a potential ceasefire or easing of restrictions on Russian energy exports.
Analysts noted that rising inventories, combined with easing geopolitical tensions, could further weigh on already elevated global oil stocks. Investors are now eyeing the OPEC+ meeting on Sunday.
The group agreed on 2 November to increase December output by 137,000 barrels per day, while eight member countries plan to halt further increases during January–March due to seasonal factors.
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