Brent Crude Contracts Rise to $63 Amid Geopolitical Risks Despite Weak Demand Pressures

Brent crude futures rose to around $63 per barrel on Thursday, continuing gains from the previous session, supported by Ukrainian strikes on Russian oil infrastructure and stalled peace talks, which have lowered expectations for a return to normal Russian oil flows, according to Trading Economics.

Ukraine launched an attack on the Druzhba oil pipeline in the Tambov region of Russia, marking the fifth attack on the route supplying oil to Hungary and Slovakia, although the operator and the Hungarian oil company confirmed that flows remain normal.

Meanwhile, American envoys concluded their talks with the Kremlin without achieving any breakthrough, while U.S. President Donald Trump stated it is unclear what will happen next.

Adding to the risk premium is the U.S. escalating threats against the oil sector in Venezuela.

However, gains have remained limited due to pressures from weak demand and the prospect of increased supply, supported by data from the U.S. Energy Information Administration (EIA) showing a rise in crude inventories by 574,000 barrels last week, along with increases in gasoline and distillate stocks.