(Investing)– Oil prices edged up on Thursday after falling in the previous session, boosted by a bigger than expected draw in U.S. crude stockpiles and a broader equities rally.
Brent crude futures were up 43 cents, or 0.7%, at $63.94 a barrel by 1400 GMT. U.S. West Texas Intermediate crude futures gained 42 cents, or 0.7%, to $59.86.
Both benchmarks rebounded after falls of about 2% in the previous session after reports indicated that the U.S. had drafted a framework for its push for an end to the Russia-Ukraine war, which could release more Russian oil into the market.
Global stock markets, which often move in tandem with oil prices, rallied on Thursday as investors cheered AI chipmaker Nvidia’s forecast-topping earnings. [MKTS/GLOB]
U.S. sanctions on trading with Russian oil companies Rosneft and Lukoil come into effect on Friday while Lukoil has until December 13 to sell its sprawling international portfolio.
Lending support to oil prices from the demand side was a bigger than expected draw in U.S. crude stockpiles, which reflected increased refining in response to strong margins and export demand for U.S. crude. [EIA/S]
Crude inventories fell by 3.4 million barrels to 424.2 million in the week ended November 14, the Energy Information Administration said, against a draw of 603,000 barrels projected by analysts in a Reuters poll.
That said, analysts also noted that U.S. gasoline and distillate stockpiles increased for the first time in more than a month, suggesting slowing consumption.
Gains were capped by persisting oil market oversupply fears and the U.S. dollar hovering near a six-month high, making dollar-denominated commodities more expensive.
