Brent crude settled at $67.73, up 6 cents (0.09%), while U.S. West Texas Intermediate (WTI) closed at $63.66, up 14 cents (0.22%). For the week, Brent gained 2.9% and WTI rose 1.4%.
Markets remain focused on the stalled peace process between Russia and Ukraine. President Donald Trump has sought to arrange a summit between Vladimir Putin and Volodymyr Zelenskiy, but little progress has been made. Moscow and Kyiv exchanged new blows this week, including Russian air strikes near the EU border and Ukrainian attacks on oil infrastructure tied to the Druzhba pipeline. ING analysts noted that the less likely a ceasefire appears, the higher the risk of additional U.S. sanctions on Russian energy.
Despite the geopolitical stalemate, crude drew support from U.S. supply data. The EIA reported a 6 million barrel drawdown in inventories for the week ended August 15, far above expectations, while the U.S. oil and gas rig count fell by one to 538, its lowest since mid-July. Both developments suggest tighter domestic supply conditions.
The broader macro backdrop remained mixed. Weak German economic data showed Europe’s largest economy contracted 0.3% in Q2, raising demand concerns. Meanwhile, investors looked to the Jackson Hole conference, where Fed Chair Jerome Powell hinted at a possible rate cut next month while acknowledging ongoing inflation risks. Analysts said an easier monetary policy could stimulate growth and lend further support to oil demand.