Oil Rises, US Stockpiles Fall; Focus on Ukraine Peace Efforts
Oil prices rose about 1% after EIA data showed a 6.0 million barrel draw in US inventories in the week ending August 15—far higher than the 1.8 million barrel estimate and the API figure of 2.4 million barrels. At 10:48 a.m. EDT, Brent was at $66.35 (+0.9%) and WTI was at $63.01 (+1.1%). Analysts said rising exports and strong refinery demand made the reports bullish.
The day before, prices fell more than 1%—WTI closed at its lowest level since May 30—on optimism about a Russia-Ukraine peace deal. But the market quickly turned around: sentiment improved today, although movement remains volatile, “down today, rebound tomorrow,” said a UBS analyst.
Geopolitically, sanctions on Russian oil remain in place. US President Donald Trump has said the US could provide air support and is arranging a Putin-Zelenskyy meeting that could potentially lead to a trilateral summit. Russia has not yet confirmed its participation, so uncertainty remains high.
Looking ahead, the market will weigh the trade-off between fundamental data (decreasing inventories, refinery demand) and geopolitical headlines. Some analysts predict a quick resolution to the conflict remains unlikely, so near-term price direction will be sensitive to news of negotiations and subsequent inventory data releases. (ayu)
Source: Newsmaker.id
