Crude Oil Prices Rise Amid Continued Ukrainian Strikes on Russian Infrastructure

Crude oil traded higher on Thursday following sustained Ukrainian strikes on Russian oil infrastructure. February Brent oil futures were priced at $62.92, up by 0.40%, while January WTI crude futures stood at $59.26, up by 0.53%.

On the Multi Commodity Exchange (MCX), December crude oil futures were at ₹5,359, up by 0.06% from the previous close, and January futures were at ₹5,358, up by 0.22%. The price movement reflects geopolitical tensions and inventory updates from the US Energy Information Administration (EIA).

Geopolitical Tensions Continue to Influence Oil Markets

Talks between the US and Russia aimed at ending the Ukraine conflict concluded without any breakthrough. US President Donald Trump described the meeting between Russian President Vladimir Putin and US envoys as reasonably good.

Trump stated that US special envoy Steve Witkoff and Jared Kushner briefed him on the discussions, indicating Putin’s willingness to negotiate. Market participants believe that resolving the conflict could restore crude oil supplies to global markets.

Crude Oil Futures Show Upward Movement

On Thursday morning, February Brent oil futures were trading at $62.92, marking a 0.40% increase. January WTI crude oil futures were at $59.26, up by 0.53% from the previous session. On MCX, December crude oil futures opened at ₹5,359 compared to the previous close of ₹5,356.

The January futures were at ₹5,358 against ₹5,346 earlier. These price changes highlight the immediate impact of geopolitical developments on commodity markets.

US Crude Oil Inventories Register Weekly Increase

The latest petroleum status report from the US EIA showed a rise in crude oil inventories for the week ending November 28. US commercial crude oil inventories increased by 0.6 million barrels during the period.

Motor gasoline inventories rose by 4.5 million barrels, while distillate fuel inventories climbed by 2.1 million barrels. The report also noted that total products supplied averaged 20.3 million barrels per day over the past four weeks, down by 0.5% compared to last year.

Demand Trends Reflect Lower Consumption

Motor gasoline product supplied averaged 8.7 million barrels per day over the past four weeks, down by 1.2% from the same period last year. Distillate fuel product supplied averaged 3.7 million barrels per day, showing a 2% decline year-on-year.

Jet fuel product supplied was down by 1.9% compared with the same four-week period last year. These figures indicate subdued demand trends despite geopolitical tensions influencing supply-side dynamics.

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Conclusion

Crude oil prices moved higher on Thursday as geopolitical risks continued to weigh on global supply expectations. Futures on Brent and WTI recorded modest gains, while MCX contracts also traded slightly higher.

The US EIA report highlighted an increase in inventories alongside weaker demand trends. Market attention remains focused on developments in the Russia-Ukraine conflict and their potential impact on global oil flows.

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