Oil rises 1% on stalled Russia-Ukraine peace talks, strong US demand
Oil prices rose by nearly a dollar a barrel on Thursday as Russia and Ukraine blamed each other for a stalled peace process, and as earlier U.S. data showed signs of strong demand in the top oil consuming nation.
Brent crude futures rose 83 cents, or 1.2%, to settle at $67.67 a barrel, a two-week high. U.S. West Texas Intermediate crude futures gained 81 cents, or 1.3%, to close at $63.52 a barrel.
Both contracts climbed more than 1% in the prior session.
The path to peace in Ukraine remained uncertain, turning oil traders cautious after a selloff over the past two weeks on hopes that U.S. President Donald Trump would soon negotiate a diplomatic end to Russia's war with its neighbor.
Both Moscow and Kyiv have since blamed each other for stalling the peace process. Russia on Thursday launched a major air attack near Ukraine's border with the European Union, while Ukraine claimed to have hit a Russian oil refinery.
Oil prices were also supported by a larger-than-expected drawdown from U.S. crude stockpiles in the last week, indicating strong demand.
U.S. crude stockpiles fell 6 million barrels in the week ended August 15, the U.S. Energy Information Administration reported on Wednesday, while analysts had expected a draw of 1.8 million barrels.
Investors were also looking to the Jackson Hole economic conference in Wyoming for signals on a possible Fed interest rate cut next month. The annual gathering of central bankers begins on Thursday, with Fed Chair Jerome Powell scheduled to speak on Friday.
Source : Reuters
