Oil Rallies to Three-Week Highs on U.S. Stock Draws, Russia Sanctions Risk

Overview

• Brent traded near $63.40 and WTI around $59.30 in late U.S. hours, up roughly 3.4% to 3.6% to reach multi-week highs.
• EIA data showed declines in U.S. crude, gasoline, and distillate inventories, with overall crude stocks falling more than analysts expected.
• The Energy Department plans to purchase one million barrels for the Strategic Petroleum Reserve, providing additional price support.
• Reports indicated Washington is considering expanded restrictions on Russian crude and refined-product shipments, fueling a late-session rally.
• President Trump said India’s Prime Minister Narendra Modi assured him India would limit Russian oil purchases, while analysts warned the upswing could be fragile given IEA projections for a surplus into early 2026.