Oil prices rose on Thursday (August 21st), boosted by signs of strong demand in the United States, with uncertainty over efforts to end the war in Ukraine also providing support.

Brent crude futures approached a two-week high and rose 46 cents, or 0.7%, to $67.30 a barrel at 08:17 GMT. U.S. West Texas Intermediate (WTI) crude rose 50 cents, or 0.8%, to $63.21 a barrel. Both contracts rose more than 1% in the previous session.

Russia said on Wednesday that efforts to resolve Ukraine-related security issues related to the war without Moscow's participation were "a futile path." "If the White House's efforts succeed in ending hostilities in Ukraine, and Russia gradually returns to the international arena, the crude oil market will weaken. But for now, the Brent price floor to watch remains at $65 a barrel," said independent analyst Gaurav Sharma.

US President Donald Trump has announced additional 25% tariffs on Indian goods starting August 27 due to India's purchases of Russian crude oil, which accounts for nearly 35% of its total oil imports. A Russian embassy official in New Delhi said on Wednesday that Moscow hopes to continue supplying oil to India despite warnings from the United States.

Given uncertainty over progress in ending the war in Ukraine, the possibility of tighter sanctions against Russia has resurfaced, fueling bullish sentiment among traders, said Tamas Varga, an analyst at PVM Oil Associates. Meanwhile, US crude oil inventories fell by 6 million barrels last week to 420.7 million barrels, according to the US Energy Information Administration (EIA).

The US Energy Information Administration (EIA) said on Wednesday, contrary to expectations in a Reuters poll that had forecast a 1.8 million barrel drop. "Crude oil prices rebounded as signs of strong demand in the US boosted sentiment," said Daniel Hynes, senior commodity strategist at ANZ, in a note on Thursday. (alg)

Source: Reuters