Crude oil futures settled sharply higher on Thursday, extending their previous session’s rally, as investors weighed hopes for strong fuel demand after a larger-than-expected drawdown in US crude stocks. Prospects of a drop in oil supply from Russia during the later part of the year due to bans by the European Union on Russian oil exports contributed as well to the jump in crude prices. Meanwhile, traders also noted a report about supply constraints after OPEC Secretary General Haitham Al Ghais said global oil markets remained at the risk of a supply squeeze.
Benchmark crude oil futures for September delivery rose $2.39 or about 2.7 percent to settle at $90.50 a barrel on the New York Mercantile Exchange. Brent crude for October delivery surged $2.94 or 3.13 percent to settle at $96.59 a barrel on London's Intercontinental Exchange.