Oil prices settled higher on Wednesday after data showed a larger-than-expected drop in U.S. crude inventories and as investors weighed the potential impact from new U.S. tariffs on India.

A US government report on Wednesday painted a mixed picture of the domestic oil market. While refinery runs were down in all regions, pulling the nationwide figure to the lowest since early July, crude stockpiles at the hub in Cushing,

While prices continue to trade within a $5 band this month, West Texas Intermediate’s so-called prompt spread — a measure of supply tightness — strengthened to the widest in more than a week. The move followed a US government report showing stockpiles at the key Cushing,

Oil extended its upward momentum in Asian markets on Thursday, lifted by a larger-than-expected decline in U.S. crude inventories, while traders monitored potential diplomatic developments between Russia and Ukraine.

U.S. gasoline stocks fell by 1.2 million barrels compared with analysts’ expectations in a Reuters poll for a 2.2 million-barrel draw. Distillate stockpiles, which include diesel and heating oil, fell by 1.8 million barrels versus expectations for an 885,000-barrel rise, the EIA data showed.