Oil Prices Rise as U.S Threatens Russia with ‘Very Severe Consequence’
Oil prices rose during early trading hours on Thursday as U.S. President Donald Trump threatened Russia with severe consequences if President Vladimir Putin does not agree to end the war in Ukraine.
Brent crude rose 0.21% to $65.61 a barrel, up from $65.47 at Wednesday’s close. The US benchmark West Texas Intermediate (WTI) increased 0.29% to $62.28 a barrel from $62.10.
Expectations of a Fed rate cut in September are supporting oil prices, as US inflation rose at a moderate pace in July. The annual inflation rate was 2.7%, below the market expectation of 2.8%. Analysts noted that the data eased concerns about the impact of US tariffs.
The likelihood of a 25-basis-point Fed rate cut in September is seen as near certain, with a 50-basis-point cut also under consideration. US Treasury Secretary Scott Bessent suggested in an interview that the Fed should consider a 50-basis-point cut.
Lower policy rates are expected to boost US economic activity, supporting higher oil demand. US President Trump threatened Russian President Vladimir Putin on Wednesday with “very severe consequences” if he does not agree to end the war in Ukraine during their summit on Friday in Alaska.
The comments come as Trump prepares to meet Putin face-to-face for the first time in his second term. Experts said that progress toward a ceasefire could ease supply concerns and put downward pressure on prices, while a disagreement could continue to support prices.
US commercial crude oil inventories increased by 0.7% during the week ending Aug. 8, according to data released by the Energy Information Administration (EIA) late Wednesday.
Inventories rose by around 3 million barrels to 426.7 million barrels, contrasting with a forecasted fall of 900,000 barrels. Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by 200,000 barrels to 403.2 million barrels, the data revealed.
Over the same period, gasoline inventories decreased by approximately 800,000 barrels to 226.3 million barrels. EIA data showed that US crude oil production increased by 43,000 barrels per day (bpd) to about 13.33 million bpd during the week ending Aug. 8.
US crude oil imports rose by 958,000 bpd to approximately 6.92 million bpd, while exports rose by 259,000 bpd to around 3.58 million bpd over the same period.
In the Short-Term Energy Outlook (STEO) released on August 12, the EIA projected that crude oil output in the country would average 13.41 million bpd in 2025. #Oil Prices Rise as U.S Threatens Russia with ‘Very Severe Consequence’Global Cryptos Market Cap Surpasses $4T, BTC, ETH Rally
