WASHINGTON (dpa-AFX) - Crude oil prices rose modestly on Friday as expectations of a Russia-Ukraine peace deal waned with no new announcement from either Russia or Ukraine or the US, which is fighting hard to end the war.
WTI Crude Oil for October delivery was last seen trading up by $0.13 (or 0.20%) at $63.65 per barrel.
Weeks before, the US had warned Russia to stop its war with Ukraine or face sanctions on its billion-dollar oil exports. As the second largest oil exporter in the world - shipping about 7.25 million barrels per day in June - the loss of Russian oil supply due to sanctions could alter the supply chain and create market havoc.
However, to give diplomacy a full chance, US President Donald Trump had a meeting with Russian President Vladimir Putin in Alaska last Friday.
Trump's measures to broker a ceasefire between the two warring nations eased the fears of sanctions. Expectations were high that Russia would soon escape Western sanctions and Russian oil would be traded freely in the market.
This Monday, Trump also met the Ukrainian president in the White House.
After the meeting, Trump took a dissociative stance, stating that he would first prepare for a meeting between the leaders of the warring nations face-to-face and then intervene later if need be.
Reports pointed to Russian airstrikes near the EU border and Ukrainian strikes on a Russian oil refinery.
With chances for an imminent peace deal fading, oil prices had upside support.
Earlier during the session, traders were focused on the Jackson Hole economic conference in Wyoming.
In his keynote speech today at the symposium, US Fed Chair Jerome Powell hinted adjustments to monetary policy may be warranted, which was read as 'rate cuts' by investors.
Lower interest rates spur and stimulate economic growth and consequently increase oil and energy demand, which could boost crude oil prices.
On the supply side, concerns remain as 2.2 million barrels per day of crude could flood the market by September, with OPEC unwinding cuts and increasing production rapidly.
Oil prices gathered support from data revealing a larger-than-expected drawdown by US crude stockpiles last week, indicating strong demand.
In the Middle East, in a televised speech broadcast live from the Yemeni Capital Sana'a on Thursday evening, the leader of the Ansarullah resistance movement Adul-Malik al-Houthi had expressed solidarity with Palestinians and reaffirmed that any ship violating the embargo on Israel will be targeted in the Red Sea.
Traders feel that if the threat materializes, it could potentially disrupt the oil and energy supply chain.
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