The oil price was steady on Friday after a two-day rally for Brent and WTI, driven by disappointment about Trump’s failure to advance the Ukraine peace process.
WTI was trading up 0.3% at $63.75 at the time of writing, while Brent was 0.2% higher at $67.86.
“The lack of progress on a Putin-Zelenskiy summit and on security guarantees reinforced expectations of prolonged conflict and potentially tougher US sanctions, adding a risk premium that could reverse part of the recent weeks’ decline,” said Frank Walbaum Market Analyst at Naga.
“Meanwhile, the market could continue to find support after US inventory data showed large drawdowns. API crude inventories fell by 2.4 million barrels in the week ending August 15, reversing the prior week’s build, while EIA declined by 6 million barrels, suggesting stronger demand. The market is also awaiting the OPEC+ meeting on September 7 for guidance on production by the organisation’s members.”
The next catalyst for the oil price will be today’s Jackson Hole Symposium and any hints of changes to interest rates to support US growth.