Dhaka, June 26 -- Oil prices inched higher, extending gains from the previous day as a larger-than-expected draw in US crude stocks signalled firm demand, while investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.

Brent crude futures rose 15 cents, or 0.2 per cent, to $67.83 a barrel by 0330 GMT. US West Texas Intermediate (WTI) crude gained 20 cents, or 0.3 per cent, to $65.12 a barrel.

Both benchmarks climbed nearly 1.0 per cent on Wednesday, recovering from early-week losses after data showed resilient US demand, according to Reuters.

"Some buyers are favouring solid demand indicated by falling inventories in US weekly statistics," said Yuki Takashima, economist at Nomura Securities.

"But in...