Oil prices post weekly gains amid uncertainty surrounding a potential peace deal between Russia and Ukraine
Oil prices stabilized on Friday as the Ukraine peace process stalled, marking the first weekly gain in three weeks.
Brent crude futures closed up 6 cents, or 0.09%, at $67.73. WTI crude futures closed up 14 cents, or 0.22%, at $63.66.
Both contracts gained more than 1% in the previous session. Brent has gained 2.9% this week, while WTI has gained 1.4%.
Everyone is waiting for Trump's next move, but nothing appears likely to happen in the coming days.
Trump must wait to see whether Putin and Zelenskyy will work together to end Russia's war in Ukraine. There is still uncertainty surrounding a potential ceasefire, and negotiations are not progressing as quickly as the market hopes.
The three-and-a-half-year war continued unabated this week, with Russia launching airstrikes near Ukraine's border with the European Union on Thursday. Russian oil shipments to Hungary and Slovakia could be suspended for at least five days.
Russian Foreign Minister Sergey Lavrov stated that a potential summit between Putin and Zelenskyy was not on the agenda.
The less likely a ceasefire is, the higher the risk of the US imposing harsher sanctions on Russia.
Meanwhile, US and European planners presented military options to national security advisors after the first face-to-face meeting between US and Russian leaders since Russia's invasion of Ukraine.
Estonia said it was ready to participate in a peacekeeping operation in Ukraine with a force of up to a battalion.
Trump has promised to protect Ukraine under any agreement to end the war, but Zelenskyy rejected the idea of withdrawing from internationally recognized Ukrainian territory.
Oil prices were also supported by a larger-than-expected drop in U.S. crude oil inventories last week, indicating strong demand.
The U.S. Energy Information Administration (EIA) said on Wednesday that inventories fell by 6 million barrels in the week ending August 15. Analysts had expected a decline of 1.8 million barrels.
Baker Hughes reported Friday that U.S. energy companies reduced the number of operating oil and gas rigs for the fourth time in five weeks this week.
The number of oil and gas rigs, an early indicator of future production, fell by one to 538 in the week ending August 22, the lowest level since mid-July.
Weak economic data from Germany on Friday, indicating that Europe's largest economy contracted by 0.3%, raised concerns about oil demand.
Investors were also watching the Jackson Hole economic conference in Wyoming for signals of a Federal Reserve interest rate cut next month.
Powell hinted at a possible interest rate cut at the US Federal Reserve's meeting next month on Friday, but stopped short of making a commitment, acknowledging both the growing risks to the job market and the threat of continued high inflation.
Low interest rates can spur economic growth and potentially boost oil demand, potentially raising prices
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