The oil market is tired of waiting for peace
22 August 2025 08:27
Oil prices were little changed on Friday as hopes for immediate peace between Russia and Ukraine diminished. This has increased the risk premium demanded by oil sellers and put prices on track to break a two-week decline, "Komersant Ukrainian" reported, citing Reuters.
According to OilPrice.com, Brent crude futures were down 2 cents to $67.65 a barrel as of 08:15 Kiev time, while West Texas Intermediate (WTI) crude futures were down 1 cent to $63.51.
Both contracts rose more than 1% during the previous trading session. Brent is up 2.7% for the week, while WTI is up 1.1%.
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The market is tired of waiting for peace
Traders are pricing in more risk as hopes fade that US President Donald Trump can quickly negotiate an agreement to end the Russia-Ukraine war. And it was those hopes that sparked the sell-off in oil over the past two weeks.
“It is proving difficult to organize a summit between Putin and Zelensky, with discussions around potential security guarantees facing obstacles. The less likely a ceasefire looks, the more likely tougher sanctions become.”
– iNG analysts said in a client note on Friday.
The situation in the U.S
Oil prices were also supported by a larger-than-expected decline in U.S. crude inventories last week. This indicates strong demand.
Inventories fell by 6 million barrels in the week ended Aug. 15, the U.S. Energy Information Administration said Wednesday. Analysts had expected a decline of 1.8 million barrels.
Investors are also awaiting signals on whether the Federal Reserve will cut interest rates next month at the Jackson Hole economic conference in Wyoming. The annual meeting of central bankers begins Thursday, and Fed Chairman Jerome Powell will speak on Friday.
Lower interest rates could spur economic growth and increase demand for oil, potentially boosting prices.
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