WTI rebounds above $62.50 as US crude inventories fall more than expected

• WTI price recovers to near $62.80 in Thursday's early Asian session.
• US crude inventories fell 6.014 million barrels last week, EIA noted. 
• Trump said the US may provide air support to back a Ukraine deal.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.80 during the early Asian trading hours on Thursday. The WTI edges higher as US crude oil inventories fall more than expected. Traders brace for progress in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now.

The US Energy Information Administration (EIA) showed a fall in crude stocks more than expected last week. This report indicated a stronger demand and lifted the WTI price. According to the EIA weekly report, crude oil stockpiles in the US for the week ending August 15 fell 6.014 million barrels, compared to a rise of 3.036 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.3 million barrels.

US President Donald Trump said on Tuesday that he had ruled out putting US troops on the ground in Ukraine, but said the country might provide air support as part of a deal to end Russia's war in the country. On Wednesday, Russia warned the West that efforts to handle security issues in Ukraine without Moscow's involvement were a "road to nowhere," as it scrambles to work out guarantees for Kyiv's future protection.

Oil traders will closely monitor the developments surrounding the prospect of peace in Ukraine. Optimism that an agreement to end the Russia-Ukraine war seemed closer might cap the upside for the WTI price. However, any signs of escalating tensions could boost the black gold in the near term.