Global oil prices advanced on Friday as renewed hostilities between Russia and Ukraine rattled markets, while U.S. inventory data revealed a sharper-than-expected draw in crude stockpiles.
Brent crude edged up to $67.22 per barrel, a slight increase from the previous day’s $67.13, while West Texas Intermediate (WTI) climbed to $63.51 per barrel.
Ukraine’s military reported one of the largest airstrikes of the year, which resulted in casualties and heightened tensions. President Volodymyr Zelensky accused Moscow of refusing to engage in meaningful peace negotiations and called for stronger international sanctions.
Adding to bullish sentiment, the U.S. Energy Information Administration (EIA) reported that crude inventories declined by six million barrels last week, significantly above expectations of an 800,000-barrel reduction. Analysts believe this points to firm demand in the world’s largest oil-consuming nation.
Meanwhile, markets await insights from Federal Reserve Chair Jerome Powell’s address at the Jackson Hole symposium, as potential rate cuts could stimulate economic growth and further lift oil demand.
Tensions also flared after a Ukrainian strike targeted a Russian oil pipeline supplying Hungary. Hungarian Foreign Minister Peter Szijjarto condemned the attack, calling it “an assault on Hungary’s energy security.” He criticized Kyiv’s actions, reiterating Hungary’s refusal to be drawn into the conflict and its opposition to the EU’s “war budget” allocations.
With no resolution in sight, oil traders remain cautious, balancing geopolitical risks with economic indicators that continue to drive market volatility.
