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WTI crude oil for October delivery was last seen trading at $ 0.13 (or 0.20%) to $ 63.65 per barrel.
Weeks ago, the US warned Russia to stop its war with Ukraine or to face restrictions on its Arab-dollar oil exports. As the world’s second largest oil exporter – about 7.25 million barrels of barrels per day in June – the loss of Russian oil supply can turn into a supply chain and wreak havoc of the market.
However, to give diplomacy a full opportunity, US President Donald Trump held a meeting with Russian President Vladimir Putin in Alaska last Friday.
Trump’s measures to broker a ceasefire between two warning countries reduced the possibility of restrictions. The expectations were high that Russia would soon survive the Western sanctions and Russian oil would be traded independently in the market.
On this Monday, Trump also met the Ukrainian President at the White House.
After the meeting, Trump took a disruptive stance, stating that he would first prepare for a face-to-face meeting between the leaders of the fighting nations and then intervene later if it would be required.
Reports pointed to the Russian air strike near the European Union border and Ukrainian attacks on a Russian oil refinery.
With the possibilities of disappearing an adjacent peace deal, there was reverse support in oil prices.
Earlier during the session, traders were focused on the Jackson Hole Economic Conference in Vyoming.
In his main speech today at the seminar, US Fed Chair Jerome Powell indicated adjustment to monetary policy, which was read by investors as “rate cut”.
Low interest rates increase and stimulate economic growth and resulting in increase in demand for oil and energy, which can promote crude oil prices.
In the supply side, concerns remain raw 2.2 million barrels per day, the market may be flooded by September, with the cut of OPEC and rapid production.
Oil prices collected support from data by American crude stockpiles last week, disclosing a large-to-applied drawdown, indicating strong demand.
In the Middle East, in a broadcast speech broadcast from the Yamani capital Sana on Thursday evening, the leader of the Ansarullah Resistance Movement, Edul-Malik Al-Hauthi expressed solidarity with the Palestinians and again confirmed that any ship that violates Ambargo on Israel would be targeted in the red sea.
Traders feel that if the danger is physical, it can potentially disrupt the oil and energy supply chain.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
