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The US is a major driver of oil prices, but sanctions remain a concern.

The oil prices rose on Friday, ending a five-day loss streak. This was due to signs of stable demand in the U.S.

Brent crude futures were up 20 cents or 0.3% to $67.09 per barrel at 0039 GMT, while U.S. West Texas intermediate crude was $64.57 per barrel, an increase of 22 cents or 0.3%.

After Donald Trump's comments about the progress of talks with Moscow, both benchmarks fell about 1% on Wednesday to their lowest levels in eight weeks.

Could meet

A White House official stated on Wednesday that the U.S. would meet with Russian President Vladimir Putin by next week. The U.S. is also preparing to impose secondary sanction, possibly on China, in order to pressure Moscow into ending the war in Ukraine.

The United States is the second largest producer of crude oil in the world.

Oil markets were still supported by a larger-than-expected decline in U.S. crude stocks last week.

Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped by 3 million barrels, to 423.7 million in the week ending August 1. This was more than analysts expected in a poll which predicted a draw of 591,000 barrels.

The United States crude exports and refinery runs increased, with the West Coast and Gulf Coast reaching their highest levels since 2023.

Hiroyuki Kikakawa, Nissan Securities Investment's chief strategist, explained that the unresolved nature of these talks, as well as the general supply and demand situation, where major producers are increasing their production, has caused investors to be cautious.

Investors are staying away from the market because of uncertainty over the US-Russian summit's outcome, the possibility of additional tariffs being imposed on India and China -- key buyers of Russian oil -- and the impact of U.S. Tariffs on the global economic system.

He said that the planned OPEC+ output increases would likely keep WTI in the $60 to $70 range throughout the month. This refers to the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.

Trump imposed a 25% additional tariff on Indian products on Wednesday, citing the continued imports of Russian crude oil by India. The new import tax is set to take effect 21 days following the 7th of August.

Trump said that he would also announce additional tariffs against China, similar to the 25% duties imposed earlier on India for its purchases of Russian crude oil.

(source: Reuters)