Oil prices hit 2-week high over strong demand

Oil prices extended gains on Thursday, August 21, 2025, bolstered by signs of strong demand in the United States.

Brent crude futures hit a two-week high in early trade and were up 27 cents, or 0.40%, to $67.11 a barrel at 0442 GMT.

U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.46%, to $63 a barrel.

Both contracts climbed over 1% in the prior session.

U.S. crude inventories fell by 6 million barrels last week to 420.7 million barrels, the U.S. Energy Information Administration said on Wednesday, against expectations in a Reuters poll for a 1.8 million-barrel draw.

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Gasoline stocks dropped by 2.7 million barrels, versus expectations for a 915,000-barrel draw, the EIA said, indicating steady driving demand during the summer travel season.

That was also seen in a jump in the four-week average for jet fuel consumption to its highest since 2019.

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

Hynes cautioned, though, that some “bearish sentiment remains evident as traders continue to monitor negotiations to end Russia’s war against Ukraine.”

Traders and analysts expect oil prices to fall once a peace deal is reached, but any continued lack of concrete progress in negotiations could underpin the market.

The Star