Crude oil prices experienced an uptick on Thursday after witnessing declines over the previous three sessions, attributed to concerns over market oversupply. The recent potential for tighter sanctions on Russian crude has provided some support to the market.
By 0401 GMT, Brent crude futures increased by 37 cents, or 0.57%, settling at $65.72 per barrel. US West Texas Intermediate (WTI) crude also rose, gaining 34 cents, or 0.55%, to reach $62.12 per barrel.
Analysts cited a technical rebound as a significant factor contributing to the price rises. Brent and WTI had both declined approximately 1% in the prior session, with Brent ending at its lowest point since June 5, and WTI since May 30. “Buying interest emerged as WTI neared its $60 support level, while heightened geopolitical risks and speculation about tighter sanctions on Russian crude also lent support,” noted Hiroyuki Kikukawa, chief strategist at Nissan Securities, a subsidiary of Nissan Securities.
The Group of Seven (G7) finance ministers announced on Wednesday their intention to increase pressure on Russia by targeting parties continuing to purchase Russian oil and those facilitating circumvention of sanctions. Additionally, U.S. officials confirmed to Reuters on Wednesday that the U.S. will provide Ukraine with intelligence for long-range missile strikes aimed at Russian energy infrastructure, allowing for potential attacks on refineries, pipelines, and other facilities to diminish Kremlin revenue.
Demand for stockpiling from China, the world’s largest oil importer, further underpinned oil prices, helping to offset potential declines, according to traders. However, concerns regarding a potential U.S. government shutdown have raised global economic worries, and expectations of increased output from OPEC+—which includes the Organization of the Petroleum Exporting Countries and allied producers—are placing a ceiling on price gains, according to Kikukawa.
On Wednesday, President Donald Trump’s administration announced the freezing of $26 billion in funding for Democratic-leaning states, continuing its stance to leverage the government shutdown against Democratic initiatives.
In terms of supply, OPEC+ is considering an increase in oil production by up to 500,000 barrels per day in November, tripling the production boost enacted in October as Saudi Arabia seeks to regain market share, according to three sources familiar with the discussions. This increase in output is expected despite anticipated declines in U.S. and Asian demand.
The U.S. Energy Information Administration reported on Wednesday an increase in crude oil, gasoline, and distillate inventories last week, as refining activity and demand have softened. Specifically, crude inventories rose by 1.8 million barrels to reach 416.5 million barrels in the week ending September 26, surpassing expectations of a 1 million-barrel rise, based on a Reuters poll.
Published on October 2, 2025.
