Oil Swings, Stocks Mixed
Oil prices fluctuated as the market weighed an increasingly bearish supply outlook amid news of stalled Ukraine peace talks. The October WTI contract briefly edged up to around $63/barrel, still near a two-month low. Over the past week, WTI has been locked in a narrow range of $62–$65 amid thin trading volumes and volatility stemming from the expiration of the previous contract.
US inventory reports also provided mixed signals: the largest overall stockpile decline since mid-June, but Cushing, Oklahoma, recorded a seventh consecutive weekly increase due to a surge in supply from the Permian Basin. On the demand side, gasoline stocks fell for a fifth straight week, and aviation fuel demand remained strong—a reminder that global inventories remain relatively low, despite many traders predicting a surplus later in the year.
Geopolitically, investors are monitoring the possibility of a Russia–Ukraine ceasefire after a series of US-facilitated summits. Moscow has not yet committed to the planned Putin–Zelenskiy summit, leaving the timeline for peace unclear. A peace deal could potentially ease restrictions on Russian oil exports, although Russian export flows have remained high despite sanctions.
At the macro level, oil prices have fallen more than 10% this year amid concerns that US tariffs will depress global growth, while OPEC+ has restored previously cut production. Thin summer liquidity has kept prices locked in a range. Most recently, WTI October crude rose 0.4% to $62.93, while Brent October crude rose 0.4% to $67.10. Brent is trading at $67.15 per barrel. (ayu)
Source: Newsmaker.id
