Oil Steady, Market Awaits Official US Stockpile Data and Direction of Ukraine Talks
Oil prices were stable on Wednesday (August 20th). Brent traded near $66/barrel after falling 1.2% the previous day, while WTI hovered below $63/barrel. The API report indicated a 2.4 million barrel decline in inventories last week, supporting prices. The market is awaiting official US government data due Wednesday evening.
Another focus remains on the Ukraine-Russia ceasefire negotiations. Any progress is seen as paving the way for easing sanctions on Russian oil exports, although Moscow's oil flows have remained relatively stable. In the US, Treasury Secretary Scott Bessent criticized India's purchases of Russian oil and reiterated plans for tariff increases. At the same time, he stated that the tariff arrangement with China was "satisfactory," indicating the status quo will remain at least until November.
For the longer-term outlook, sentiment is bearish. The market anticipates a supply glut by the end of 2025 as OPEC+ increases barrels and demand concerns amid US trade policy. Oil futures have fallen more than 10% since the start of the year. Vivek Dhar (CBA) predicts Brent could weaken to $63/barrel in the fourth quarter as global inventories increase.
At 1:45 PM Singapore time, October Brent rose 0.4% to $66.06/barrel. September WTI (expires Wednesday) rose 0.4% to $62.58/barrel, while the more active October WTI gained 0.5% to $62.06/barrel. Further movements will be heavily influenced by official stockpile data and the latest news on the Ukrainian diplomatic front.(ayu)
Source: Newsmaker.id
