Oil extends gains into second day as Asian markets post mixed results

Asian markets remained mixed and European stocks slipped on Thursday, with investors bracing for fresh guidance on interest rates in the US. However, oil extended its gains for the second day straight.

European stocks mostly edged lower. In early trading, the DAX in Germany eased 0.2% to 24,236.16. London’s FTSE 100 also lost 0.2%, settling at 9,269.31, and Paris’ CAC 40 fell 0.5% to 7,931.26.

Asian markets move in different directions

Asian markets, on the other hand, didn’t follow a clear direction. Tokyo’s Nikkei 225 dropped 0.6% to 42,610.17 after a private survey showed factory activity was below the break-even line for a second month in August. 

Elsewhere, the Hang Seng index in Hong Kong was 0.2% lower and reached 25,104.61, whereas the Shanghai Composite inched up 0.1% to 3,771.10. 

Australia remained the outlier. The S&P/ASX 200 advanced 1.1% to reach 9,019.10, crossing 9,000, propelled by stronger economic readings and upbeat corporate results. The South Korean Kospi gained 0.4% to reach 3,141.74 after paring part of its early rise. 

Oil prices edged up for a second straight session

Energy markets extended a recent rebound as inventory data pointed to tight U.S. supplies. Oil prices firmed for another session, challenging the perception that a global surplus will emerge later in 2025. 

Brent crude was priced above $67 per barrel, building on a 1.6% advance on Wednesday, though prices remained locked in a narrow band that has held for over 2 weeks amid thin summer volumes.

U.S. crude in storage fell by 6 million barrels in the previous week, the largest draw since mid-June, according to government figures. Gasoline stockpiles declined for the 5th straight week, reinforcing signs that, despite talk of a later-year surplus, global inventories remain unusually low. Demand for jet fuel also stayed very strong.

Even with the recent uptick, oil is down over 10% since the start of the year. Traders remain wary that U.S. trade policies could slow global growth just as OPEC members restore previously idled output, fueling concerns that supply could outpace consumption once summer demand fades. Market participants are also tracking efforts toward a cease-fire in Ukraine, which could lead to fewer limits on crude shipments from Russia.

Since August 4, Brent has traded within a $65 to $70 range. A note of caution came from the key U.S. storage hub in Oklahoma, where crude inventories rose consecutively for the 7th week, Energy Information Administration data showed Wednesday. 

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