WTI price edges higher to around $63.40 in Friday’s early Asian session.
US EIA crude oil inventories tumbled by 6.0 million barrels last week.
Uncertainty of a ceasefire supports oil prices for now.
Powell's Jackson Hole speech will take center stage later on Friday.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $63.40 during the early Asian trading hours on Friday. The WTI rises to near a two-week high amid signs of strong US demand and uncertainty over efforts to end the war in Ukraine.
Data released by the US Energy Information Administration (EIA) on Wednesday showed crude inventories fell more than expected last week. This weekly report pointed to robust demand in the world’s largest oil consumer and underpinned the WTI price. Crude oil stockpiles in the US for the week ending August 15 fell 6.014 million barrels, compared to a rise of 3.036 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.3 million barrels.
Additionally, the lack of a near-term resolution between Russia and Ukraine contributes to the WTI’s upside. Traders doubt about negotiations for an end to the Russian-Ukrainian war after Russian Foreign Minister Lavrov said Russia should have a say in security arrangements for Ukraine, and that any unilateral guarantees would be "hopeless." While negotiations might ease supply concerns and cap the upside for the black gold, the prospect of sanctions on Russian crude being lifted could support the WTI price.
Oil traders will closely monitor the speech from Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole symposium later on Friday. His remarks could offer some hints about a short-term direction for the Fed regarding rates as well as a longer-term view on policy. Money markets now price a 74% chance of a September rate cut, according to the CME FedWatch tool. Rising rate cut expectations could drag the US Dollar (USD) lower and lift the USD-denominated commodity price.
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