Oil prices are stable: the market is waiting for the continuation of the “peace” process between russia and ukraine
20 August 09:32
Oil prices were virtually unchanged on Wednesday as investors await further steps in negotiations to end Russia’s invasion of Ukraine. This is reported by "Komersant Ukrainian" with reference to Reuters.
Sanctions against Russian oil are still in force, as well as the possibility of additional restrictions for its buyers. This continues the status quo in the market.
According to OilPrice.com, as of 08:36 Kiev time, Brent crude futures were trading at $66.02 per barrel, 23 cents higher than the previous value. U.S. West Texas Intermediate futures for September, which expire on Wednesday, were at $62.55 a barrel (20 cents). The more active October contract was trading at $61.90 a barrel (13 cents).
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The market is waiting for peace, but doesn’t have much faith in it
Prices fell more than 1 percent Tuesday amid optimism that an agreement to end the war may be nearing, which could mean easing sanctions against Russia and boosting global oil supplies.
“Crude oil markets are in limbo … prolonged peace talks are keeping the market on edge.”
– noted Emril Jamil, senior analyst at LSEG.
Despite U.S. President Donald Trump’s statements on Tuesday that America may provide air support as part of an agreement to end Russia’s war against Ukraine, he also acknowledged that Russian President Vladimir Putin may not be willing to enter into an agreement at all.
On Monday, Trump said he would organize a meeting between Putin and Ukrainian President Volodymyr Zelensky, followed by a trilateral summit between the three leaders.
On Tuesday, Trump said he discussed with Hungarian Prime Minister Viktor Orban the possibility of talks between Zelensky and Putin in Budapest.
Russia has not yet confirmed its participation in the talks with Zelensky.
“The likelihood of a quick resolution of the conflict with Russia seems unlikely at this point,”
– daniel Hynes, senior commodities strategist at ANZ Bank, said in a research note on Wednesday.
U.S.: inventories declining, demand stable
In the US, BP said operations at its 440,000 bpd refinery in Whiting, Indiana, had been disrupted by flooding caused by a severe thunderstorm. This could affect the refinery’s demand for crude oil. The plant is a key producer of fuel for the Midwest market.
Prices have received some support from an industry inventory report that shows steady demand for crude oil and fuel in the U.S., the world’s largest oil consumer.
According to the American Petroleum Institute, U.S. crude oil inventories fell by 2.42 million barrels in the week ended Aug. 15. Gasoline stocks decreased by 956 thousand barrels, while distillate stocks increased by 535 thousand barrels compared to the previous week.
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