Oil climbs on U.S. stock draw and sanctions on Russian oil firms

Oil prices rose through the middle of the week as markets weighed a mix of tightening U.S. inventories and new U.S. sanctions on major Russian oil companies against longer‑term supply increases from OPEC and record U.S. production. By late Wednesday and into Thursday, Brent crude climbed into the low 60s and briefly approached mid 60s per barrel, while U.S. West Texas Intermediate rose above 60 dollars, reversing earlier declines to five‑month lows.

Traders pointed to two immediate bullish developments. The U.S. Energy Information Administration reported a draw of about 961,000 barrels in crude stocks for the prior week, versus analysts' expectations for a build. Gasoline inventories fell by roughly 2.15 million barrels, also larger than forecast. At the same time the White House confirmed plans to add about 1 million barrels to the Strategic Petroleum Reserve, and the U.S. announced sanctions on Russian state and private oil firms Rosneft and Lukoil as part of pressure over the conflict in Ukraine. Treasury Secretary Scott Bessent said the U.S. was encouraging allies to join and adhere to the measures.

Those moves helped offset bearish signals that had pushed prices lower...