08:50 AM EDT, 08/20/2025 (MT Newswires) -- Oil prices rose early on Wednesday as a report showed a larger than expected draw on U.S. oil inventories last week, while talks over ending Russia's war on Ukraine continue.

West Texas Intermediate crude oil was last seen up US$0.71 to US$63.06 per barrel, while October Brent crude was up US$0.65 to US$66.44 per barrel.

The rise comes after the American Petroleum Institute's weekly inventory survey showed a drop of 2.4-million barrels per day last week, twice consensus estimate that called for a drop of 1.2-million barrels according to Oilprice.com. The Energy Information Administration will release official inventor data later Wednesday morning.

The drop shows summer demand remains solid even as supply is on the rise. OPEC+ is, adding further barrels to an already over-supplied market, wrapping up its return of 2.2-million barrels per day of production cuts with a final 548,000 bpd tranche of supply on Sept.1. Both the International Energy Agency and the Energy Information Administration say global inventories are steadily rising and likely to push prices lower.

Wednesday's rise comes as diplomatic efforts to reach a deal to end Russia's war on Ukraine continue, with any deal likely to see the full return of Russian oil exports to world markets, further hiking supply. European countries are offering to supply troops to enforce any potential ceasefire agreement. Talks are continuing, with the Guardian reporting the United Kingdom is ready to supply aircraft and ships to guard Ukraine's skies and sea, but will not contribute troops to defend the frontline, even as the outlook for talks between Ukraine and Russia is uncertain.

"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 Russia, based on comments from its foreign minister, appears less than enthusiastic about a meeting with the Ukrainian leader, a prerequisite for any potential peace," PVM Oil Associates noted.