Oil edges higher on Thursday

WTI crude oil futures edged higher to around $59.5 per barrel on Thursday, following a more than 2% decline in the previous session, as investors weighed a US proposal to resolve the Ukraine war against an impending deadline for two key Russian oil firms.

Sanctions on oil majors Rosneft and Lukoil, set to take effect on Friday, have already shown signs of disrupted trade flows, particularly to India. Still, a Russian official said the restrictions are not affecting production and that the country will meet its output quota by year-end or early next year.

Limiting further gains, Washington urged Zelenskiy to accept a US-crafted peace plan, raising expectations of renewed diplomacy. This could pave the way for increased Russian oil shipments, adding to ongoing oversupply concerns.

On the data front, US government figures painted a mixed picture, with crude inventories falling more than expected while gasoline and distillate stockpiles rose for the first time in over a month.