Oil prices inched up on Thursday as a larger-than-expected draw in US crude inventories countered speculation that Washington's push for a Russia-Ukraine peace framework could add supply to an already well-stocked market. Brent crude rose 20 cents to $63.72 a barrel at 0714 GMT, while US West Texas Intermediate (WTI) gained 22 cents to $59.66. Both benchmarks had slipped 2.1 per cent on Wednesday after a Reuters report said the United States had urged Ukraine to consider a draft agreement that would end the conflict by conceding territory and weapons, raising expectations that sanctions on Russian crude could later be lifted. Analysts at ING noted that Kyiv is unlikely to accept the proposal, though signs of continued US diplomacy reduced concerns about additional sanctions and the enforcement of existing restrictions. Market pressure also stemmed from the prospect of more Russian barrels entering the market at a time when producers have increased output and crude is being stored on tankers. Some support came from US data showing crude stockpiles dropped by 3.4 million barrels to 424.2 million last week, far exceeding expectations for a 603,000-barrel draw as refiners ramped up runs and export demand strengthened. However, gasoline and distillate inventories rose for the first time in more than a month, indicating softer fuel consumption. Traders are also watching a 21 November deadline for companies to wind down business with Rosneft and Lukoil, Russia's two largest oil producers, which remain under US sanctions tied to the war. Attribution: Reuters
