Benchmark Brent crude prices advanced 8 cents to $67.75 per barrel, while U.S. West Texas Intermediate prices rose 0.1% to $63.62 per barrel at 3.04 a.m. ET.
Oil Prices edged higher on Friday as the hopes of a quick resolution to the war in Ukraine continued to fade.
Benchmark Brent crude prices advanced $0.08 to $67.75 per barrel, while U.S. West Texas Intermediate prices rose 0.1% to $63.62 per barrel at 3.04 a.m. ET. Both contracts were headed for weekly gains after two consecutive weeks of losses.
Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘neutral’ territory at the time of writing.
Over the past two weeks, oil prices were pressured by hopes of a quick end to the Ukraine war amid the Trump administration’s threats to put further sanctions on buyers of Russian oil. Trump also met with Russian President Vladimir Putin in Alaska last week to discuss a ceasefire in the three-and-a-half-year-old conflict. However, the summit did not yield any significant results.
According to a Reuters News report, Russian President Vladimir Putin demanded that Ukraine renounce its rights over the entire eastern region of Donbas, scale back NATO ambitions, and keep Western troops out of the country. Ukrainian President Volodymyr Zelenskyy has repeatedly dismissed any Russian claims on internationally recognized Ukrainian territory.
On Thursday, Russia reportedly launched an air attack near Ukraine’s border with the European Union. Kyiv also hit back at a Russian oil refinery.
Separately, India and Russia agreed to expand bilateral ties, with Indian foreign minister Subrahmanyam Jaishankar saying India-Russia ties were “steadiest of the major relationships in the world after the Second World War.” India presently faces a steep 50% U.S. tariff rate due to its purchases of Russian crude.
Oil prices also received a shot in the arm this week from a larger-than-expected drawdown in crude inventories in the U.S., the top oil consumer in the world.
Investors now keenly wait for U.S. Federal Reserve Chair Jerome Powell’s comments at Friday’s annual Jackson Hole Symposium hosted by the Kansas City Fed, in Wyoming. Any possible commentary hinting toward a rate cut will weaken the dollar and in turn boost oil prices.
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