According to Reuters, SingaporeA larger-than-expected decline in U.S. crude oil stocks, concerns about supply after U.S. sanctions on Russia, and a stronger outlook for global demand all helped oil prices rise for a second session on Thursday.


After climbing 2.6% the previous session to reach their highest level since July 26 of last year, Brent crude futures increased 25 cents, or 0.3%, to $82.28 per barrel by 04:46 GMT.

After rising 3.3% on Wednesday to reach their highest level since July 19, U.S. West Texas Intermediate oil futures increased 28 cents, or 0.4%, to $80.32 per barrel.

As exports increased and imports decreased last week, U.S. crude oil stocks dropped to their lowest level since April 2022, the Energy Information Administration (EIA) reported on Wednesday. [EIA/S]

According to a Reuters survey, economists had predicted a 992,000-barrel decline, but the 2 million-barrel decrease exceeded that.

Following the imposition of more extensive sanctions by the United States on Russian oil producers and tankers, the decline contributed to a constricted outlook for world supplies. Moscow's main clients are searching the world for replacement barrels due to the new U.S. sanctions, and shipping costs have also increased.

The Biden administration targeted Russia's military industrial base and evasion techniques with hundreds of new penalties on Wednesday.

According to Rory Johnston, founder of Commodity Context, despite the current price increase, the Organization of the Petroleum Exporting Countries and its partners, who have been reducing output collectively for the past two years, are probably going to be hesitant about boosting supply.
According to an official, Israel and Hamas reached an agreement to stop fighting in Gaza and swap Israeli captives for Palestinian detainees, limiting the revenues from oil.


According to a report from JPMorgan analysts, global oil demand increased by 1.2 million barrels per day in the first two weeks of 2025 compared to the same period the previous year, which was marginally less than anticipated.

According to the analysts, increased travel in India, where a massive festival gathering is taking place, and travel for the Lunar New Year celebrations in China at the end of January would generate an annual increase in oil demand of 1.4 million barrels per day in the upcoming weeks.

Following statistics showing a slowdown in core U.S. inflation, some investors are also keeping an eye out for possible interest rate reduction by the U.S. Federal Reserve before the year is up. These cuts might boost economic activity and energy consumption."The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process," Johnston stated.