Oil edged higher as President Donald Trump said his maximum pressure campaign against Iranian oil would continue, while a government report showed another big drop in U.S. crude stockpiles.

West Texas Intermediate crude futures rose above $65 a barrel after rising 0.9% in the previous session. Brent settled near $68. Trump said he was "not giving up" on a strategy targeting Tehran's petrodollars, after comments that appeared to undermine the plan. The president also flagged talks with Iran next week.

Oil hit its biggest two-day decline since 2022 earlier in the week after Israel and Iran agreed to a ceasefire, easing concerns about potential disruptions to energy supplies from the Middle East. Trump said the conflict was effectively "over" after the U.S. bombing of an Iranian nuclear site.

Meanwhile, U.S. government data showed crude inventories fell for a fifth straight week, dropping by 5.84 million barrels to a seasonal low in 11 years. Stockpiles at the Cushing, Oklahoma, storage hub also fell, dropping for a third week to their lowest since February.

The market will now likely turn its attention to the upcoming OPEC+ meeting on July 6 that will decide output policy for August. Russia is open to another output increase if the alliance deems it necessary, according to a person familiar with the matter. (alg)

Source: Bloomberg