Oil prices edged higher on Wednesday as US industry data showed a larger-than-expected draw in crude inventories, while investors weighed progress in international efforts to end the Russia-Ukraine war.
Brent crude was trading at $65.92 per barrel at 9:59 a.m. local time (0659 GMT), up 0.48% from the previous close of $65.60.
The US benchmark West Texas Intermediate (WTI) rose 0.51% to $62.27, from $61.95 in the prior session.
The American Petroleum Institute (API) reported a 2.4 million-barrel decline in US crude stocks last week, compared with expectations for a 1.2 million-barrel drop, signaling stronger demand. Official data from the US Energy Information Administration (EIA) is due later in the day.
- Ukraine peace efforts in spotlight
In addition, growing expectations for a peace deal in the Russia-Ukraine war continued to influence prices.
European Council President Antonio Costa reaffirmed that they will continue to work together with the US on security guarantees for Ukraine following a virtual meeting on Tuesday.
"We will work together with the United States on concrete and essential security guarantees. Together with (Ukrainian) President Zelenskyy and the US, we will prepare the next steps to achieve a just and lasting peace," Costa wrote on the US social media company X following the videoconference with the EU leaders.
Costa reiterated the 27-member bloc's "unity" and "unwavering support" for Ukraine, stressing its "commitment" to maintain pressure on Russia while prioritizing efforts to halt the killing, advance prisoner exchanges, and secure the return of "abducted" children.
"We must continue to support the Ukrainian people and move forward with the enlargement process. Ukraine’s future also lies in the prosperity and stability that EU membership can provide," Costa added.
On Monday, US President Donald Trump hosted Zelenskyy and multiple European leaders at the White House, where they discussed security guarantees for Ukraine and other ways to end the war in Ukraine. Trump said his administration began preparations for a meeting between Russian President Vladimir Putin and Zelenskyy, to be followed by a trilateral summit among the three presidents.
German Chancellor Friedrich Merz said following the meeting in Washington, which included European leaders, that Zelenskyy and Putin were expected to meet within two weeks.
While peace efforts are pressuring prices by easing supply concerns, expectations that a possible agreement could lift sanctions on Russian crude are providing upward support.
- US-India trade tensions add pressure, Fed signals awaited
Adding to the geopolitical tension, the Trump administration announced on Aug. 6 a 25% tariff on Indian goods over New Delhi’s purchases of Russian oil. The levy, which takes effect Aug. 27, will raise total tariffs on many Indian imports to as much as 50% and has stalled trade talks between Washington and New Delhi.
Analysts say Indian refiners plan to keep buying Russian oil as long as it remains cost-advantageous. Talks between the United States and India at the end of the month are expected to play a key role in shaping price trends.
Investors are also awaiting guidance on interest rate cuts from Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium on Aug. 22, with monetary policy seen as another key driver for energy demand.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr