Oil edges higher amid robust U.S. consumption

August 21, 2025 (MLN): Oil prices ticked up on Thursday, supported by a sharper than expected drop in U.S. crude and fuel inventories which signalled firm consumption in the world’s largest oil market.

Brent crude futures increased by $0.85, or 1.28%, to $67.13 per barrel.

West Texas Intermediate (WTI) crude futures went up by $0.33, or 0.53%, to $63.04 per barrel by [10:04 am] PST.

“Crude oil prices rebounded as signs of strong demand in the U.S. boosted sentiment,” said Daniel Hynes, senior commodity strategist at ANZ to CNBC.

However, he added that “bearish sentiment remains evident as traders continue to monitor negotiations to end Russia’s war against Ukraine.”

Russia has pushed back against Western efforts to chart Ukraine’s security future without its participation, warning that such moves were a road to nowhere.

The stalled peace talks have kept sanctions on Russian oil flows in place, while prospects of fresh U.S. tariffs on buyers of Russian crude add to market uncertainty, according to CNBC.

Despite mounting pressure, Moscow has vowed to maintain supplies to willing partners. Russian diplomats in India reiterated on Wednesday that crude shipments to New Delhi would continue despite U.S. objections.

The standoff has triggered wider trade friction. U.S. President Donald Trump placed a fresh 25% tariff on Indian goods effective August 27, citing the country’s continued purchases of Russian crude.

Meanwhile, the European Union imposed sanctions on Nayara Energy, a private Indian refiner partly owned by Rosneft.

While Indian refiners initially slowed their Russian oil intake, officials at state-run Indian Oil and Bharat Petroleum confirmed fresh deals for September and October cargoes, encouraged by steeper discounts.

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