Oil Prices Climb as Russia –Ukraine Tensions Escalate
Oil prices climbed in the global commodity market on Friday as Russia-Ukraine tensions escalated amidst a larger-than-expected draw in US crude inventories, bolstering market sentiment.
Brent crude was trading at $67.22 per barrel, up 0.1% from the previous session’s $67.13. The US benchmark West Texas Intermediate (WTI) gained 0.2% to $63.51. Ukraine’s military reported “one of the largest air attacks of the year,” which killed one person and injured 15, as President Volodymyr Zelensky accused Moscow of showing no readiness for peace talks.
He added that Moscow has shown no indication of readiness for meaningful negotiations to end the conflict, stressing the need for additional measures, including strong sanctions and tariffs. Prices also drew support from data signaling robust US oil demand.
The US Energy Information Administration (EIA) reported on Aug. 21 that commercial crude inventories fell by 6 million barrels last week to 420.7 million barrels, far exceeding expectations of an 800,000-barrel decline. Markets are now focused on remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium later today.
Markets now await Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later Thursday for signals on potential September interest rate cuts, which analysts say could spur growth and lift oil demand further.
A Ukrainian attack on a pipeline in Russia halted deliveries of Russian oil to Hungary, Hungarian Foreign Minister Peter Szijjarto said .
“Ukraine has once again attacked the oil pipeline leading to Hungary, cutting off supplies. This latest strike against our energy security is outrageous and unacceptable!” Szijjarto said in a statement on social media.
He added that Russian experts are working to repair the damage, but it is not certain when the deliveries will resume.
“For 3.5 years Brussels and Kyiv have tried to drag Hungary into the war in Ukraine. These repeated Ukrainian attacks on our energy supply serve that same purpose,” Szijjarto said. He stressed that Hungary has “nothing to do with” the war in Ukraine and will “stay out of it.”
“Finally, a reminder to Ukrainian decision-makers: electricity from Hungary plays a vital role in powering your country,” the foreign minister added. Ukraine has recently stepped up attacks against Russian oil and fuel installations.
Hungary was the only European country that did not back Ukraine’s freedom to decide its own future in a joint statement of EU states ahead of Friday’s Alaska summit between US President Donald Trump and his Russian counterpart Vladimir Putin.
The country recently rejected the European Commission’s proposed budget, saying it allocates nearly 20% of resources to Ukraine and military spending and voicing disinterest in a “war budget.” Hungary has also expressed opposition to the EU’s sanctions on Russia and Ukraine’s bid for membership. #Oil Prices Climb as Russia –Ukraine Tensions Escalate Cadbury Nigeria Stunning Turnaround with Strong Earnings, Signal Rebound
