Global crude oil prices remained largely unchanged on Friday as optimism for a swift peace agreement between Russia and Ukraine waned, leaving prices on course for their first weekly increase in three weeks.
Brent crude hovered at $67.67 per barrel as of Friday afternoon, while West Texas Intermediate (WTI) futures edged up by 9 cents (0.1%) to $63.61 per barrel.
Both benchmarks advanced over 1% in Thursday’s session, with Brent up by 2.8% and WTI by 1.4% so far this week.
“Everyone is waiting for President Trump’s next step,” noted UBS commodity analyst Giovanni Staunovo. “Over the coming days, it seems nothing will happen.”
The conflict between Russia and Ukraine intensified this week after Russia launched an airstrike near Ukraine’s EU border on Thursday.
In retaliation, Ukraine reported targeting a Russian oil refinery and the Unecha oil pumping station—a key link in Russia’s Druzhba pipeline to Europe. Hungary confirmed that flows through the pipeline were suspended.
Former U.S. President Donald Trump is working to facilitate a summit between Russian President Vladimir Putin and Ukraine’s Volodymyr Zelensky to push for peace talks.
However, ING analysts cautioned in a Friday note that organising such a meeting remains complicated, especially amid disagreements on security guarantees.
They added that the longer a truce appears unlikely, the higher the risk of Washington imposing stricter sanctions on Moscow.
Meanwhile, U.S. and European military planners have outlined options following the first in-person engagement between U.S. and Russian leaders since the invasion began.
Sources revealed that Putin is demanding that Ukraine relinquish the entire Donbas region, abandon its NATO ambitions, and prevent Western troops from operating in the country. Trump has pledged U.S. protection for Ukraine under any peace accord, while Zelensky dismissed calls to cede internationally recognised Ukrainian territory, according to Reuters.
On the supply side, prices received support from an unexpected drawdown in U.S. crude inventories. According to the Energy Information Administration, stockpiles declined by 6 million barrels for the week ending August 15, significantly surpassing analysts’ forecasts of a 1.8-million-barrel reduction.
However, weak economic indicators from Germany partially offset the bullish trend. Data showed Europe’s largest economy contracted by 0.3% in Q2, sparking concerns about future energy demand.
Market participants are also monitoring the Jackson Hole Symposium for signs of potential interest rate cuts by the Federal Reserve. Chair Jerome Powell’s speech on Friday is expected to provide direction, as lower rates typically stimulate growth and boost energy consumption.
