West Texas Intermediate (WTI) crude is trading near $63.40 per barrel in Thursday’s Asian session, paring back gains from the previous day. Oil prices eased as traders assessed softening United State fuel demand with the summer driving season nearing its end.
The latest US Energy Information Administration (EIA) data showed crude inventories fell by 2.39 million barrels last week, a deeper draw than the forecast 2.0 million decline, signaling resilient demand ahead of the Labor Day holiday. Still, analysts highlighted that the holiday typically marks the end of peak US consumption, raising concerns about weaker demand in the weeks ahead.
XtremeMarkets strategist Tony Sycamore noted that traders are also watching India’s stance on Russian crude purchases amid US tariff pressure. While President Donald Trump raised tariffs on Indian imports to as high as 50% on Wednesday, analysts expect India to continue buying Russian oil in the near term, muting the broader impact.
Geopolitical tensions could provide a floor for prices, with Russia launching drone strikes overnight on energy infrastructure across six Ukrainian regions.
Looking forward, oil may find support from expectations of looser US monetary policy. New York Fed President John Williams said Wednesday that interest rates are likely to come down eventually, though policymakers will wait for incoming data before deciding on September’s outlook.
