Crude Oil Prices Rise on Aug 21 Further in Asia Amid Supply Concerns

Crude oil prices continued their upward momentum during Asian trading hours on Thursday, driven by a sharper-than-anticipated drop in U.S. crude inventories. At the same time, markets kept a close eye on potential peace talks between Russia and Ukraine, which could reshape the global supply outlook.

As of 21:52 ET (01:52 GMT), Brent crude futures for October delivery were up 0.5% at $67.20 per barrel, while West Texas Intermediate (WTI) rose 0.6% to $63.11 per barrel.

U.S. Crude Inventories Fall More Than Expected – EIA

On Wednesday, Brent crude jumped nearly 2% after the U.S. Energy Information Administration (EIA) reported a significantly larger-than-expected draw in crude stockpiles. Inventories fell by approximately 6 million barrels, far exceeding analysts’ forecasts of a 1.8 million-barrel decline.

The drawdown was primarily attributed to strong export volumes and stable refinery activity, signalling tightening supplies and resilient demand — a combination that bolstered overall market sentiment.

Adding to the bullish outlook, gasoline inventories dropped by 2.7 million barrels, underlining strong consumer demand amid the summer driving season. Refinery utilization hit 96.6%, reflecting robust processing rates across the U.S. These indicators were seen by traders as evidence of continued strength in U.S. fuel consumption, helping to ease broader concerns about global economic uncertainty.

Markets Eye Potential Russia-Ukraine Peace Talks

Meanwhile, geopolitical developments added another layer of complexity to the market. On Tuesday, President Donald Trump revealed he had spoken with Russian President Vladimir Putin, following a meeting with Ukrainian President Volodymyr Zelenskiy and European leaders at the White House.

Trump indicated that discussions were underway to facilitate direct talks between Russia and Ukraine, with the possibility of a U.S.-mediated trilateral summit also on the table.

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Investors are watching closely for signs that a diplomatic breakthrough could lead to a loosening of Western sanctions on Russian oil exports, a major swing factor in global supply dynamics.

Although Russia remains a key global oil supplier, ongoing sanctions imposed since the Ukraine conflict have restricted its access to Western markets, keeping certain export flows subdued.

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