FX.co ★ WTI Crude Little Changed

WTI crude oil futures experienced a modest uptick of 0.2%, closing at $63 per barrel last Friday, marking their first weekly advance in three weeks. This price movement came amid ongoing geopolitical tensions and shifts in supply dynamics that injected volatility into the market. The ongoing conflict in Ukraine introduced added uncertainty, with Russia initiating new airstrikes and Ukraine targeting a refinery and a critical oil pumping station, thereby disrupting the flow through the Druzhba pipeline. Concurrently, U.S. crude oil inventories experienced a significant reduction of 6 million barrels over the past week, a decline far exceeding expectations, indicating robust demand and lending support to prices. Market participants also turned their attention to the Jackson Hole economic symposium, where Federal Reserve Chair Jerome Powell's dovish commentary fueled anticipation of a potential interest rate cut in September, which could stimulate economic growth and, consequently, oil demand. Nonetheless, lingering concerns over weak economic indicators from Germany and the possibility of a supply surplus after the summer season kept price gains constrained within a narrow band.