Oil Rises, What's Driving It?
Oil prices continued their rise on Thursday (August 21st), driven by signs of strong demand in the United States. Uncertainty surrounding efforts to end the war in Ukraine also supported buying sentiment, keeping prices near two-week highs.
At 08:17 GMT, Brent was around $67.30/barrel (+0.7%) and WTI was at $63.21/barrel (+0.8%). Both had risen more than 1% in the previous session, indicating continued buying interest after the early-week rally.
From a geopolitical perspective, Russia considered efforts to resolve the security issue related to Ukraine without involving Moscow a "dead end." At the same time, concerns about tighter sanctions against Russia resurfaced. Russia also stated that it would continue to supply oil to India, while the US announced an additional 25% tariff on Indian goods starting August 27th related to purchases of Russian oil.
US fundamentals also supported. EIA data showed that US crude oil inventories fell by 6 million barrels to 420.7 million barrels, significantly deeper than the expected decline of 1.8 million barrels. Several analysts believe this strong demand signal is fueling the price rebound, with some viewing the $65/barrel area as a near-term Brent price floor.
Key Points:
Brent $67.30 (+0.7%), WTI $63.21 (+0.8%); both rose >1% in the previous session.
US demand is strong: inventories fell 6 million barrels vs. expectations of -1.8 million (EIA).
Geopolitical risks: Ukraine uncertainty and potential Russian sanctions support prices.
Russia continues to supply India; US tariff policies add to market uncertainty.
Some analysts see $65 as a near-term Brent floor. (ayu)
Source: Newsmaker.id
