WTI trades higher near $65.00 as US crude stocks indicate strong demand

• WTI price appreciates as a larger-than-expected draw in US crude stocks, signaling firm demand.

• The US EIA reported a 5.8 million barrel drop in crude Oil inventories last week.

• Oil prices may face challenges as the Israel-Iran ceasefire eased supply concerns.

West Texas Intermediate (WTI) Oil price halts its three-day losing streak, trading around $64.90 per barrel during the Asian hours on Thursday. Crude Oil prices edge higher as a larger-than-expected draw in United States (US) crude stocks, which signaled firm demand.

The US Energy Information Administration (EIA) Crude Oil Stocks Change reported on Wednesday that crude inventories fell 5.8 million barrels to an 11-year seasonal low in the week ending June 20 amid rising refining activity and demand. Moreover, Gasoline stocks surprisingly fell by 2.1 million barrels, defying forecasts for a 381,000-barrel increase, and climbed to their highest since December 2021.

However, the downward pressure on Oil prices may continue amid easing supply concerns, driven by the Israel-Iran ceasefire. Traders will likely focus on the developments surrounding US-Iran talks and Middle East conflicts.

US President Donald Trump said that the United States (US) and Iran would hold a meeting next week, but asked about the necessity for a diplomatic solution on Iran's nuclear program, citing the damage that American bombing had done to key sites, per Bloomberg.

This follows after President Trump’s renewed commitment to the maximum pressure campaign on Iran, including Oil export restrictions. However, Trump hinted at a potential easing of enforcement to support Iran’s reconstruction and indicated that China may continue importing Iranian crude.

Last week, Igor Sechin, head of Russia’s largest Oil producer Rosneft, said OPEC+, which includes OPEC members and allies like Russia, could advance its planned output increases by about a year from the original schedule.