Oil prices are higher this morning, bucking a broadly risk-off sentiment across markets, following API’s report overnight showing US crude stockpiles declined last week, while traders assessed negotiations to end Russia’s war against Ukraine.

“Focus is gradually shifting back towards fundamentals,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management.

Declining US inventories in EIA data later “could lend support, as many fear a significant inventory build in the coming quarters.”

The drop shows summer demand remains solid even as supply is on the rise.

Investors are watching on progress toward a ceasefire between Russia and Ukraine following a series of high-level talks brokered by President Donald Trump.

“The latest series of meetings aimed at brokering peace in Ukraine was also weighed by financial markets, but had a more pronounced impact on oil. Intense talks about ending hostilities, however elusive, raised the spectre of Russia re-entering the international market. That was until overnight, as