Oil prices rise again after five consecutive sessions of decline

Oil prices rose again in trading on Thursday, August 7, ending a series of losses that lasted five consecutive sessions, supported by signs of improving demand in the United States, the world's largest oil consumer, along with a decrease in supply disruption fears with expectations of talks between the United States and Russia regarding the war in Ukraine.

Brent crude futures recorded an increase of 0.6%, reaching $67.28 per barrel, while West Texas Intermediate crude rose by 0.7%, reaching $64.80 per barrel. This recovery came after both crude types fell by about 1% in Wednesday's session, reaching their lowest levels in eight weeks, affected by statements from U.S. President Donald Trump regarding "progress in talks with Moscow."

A White House official reported that Trump may meet with Russian President Vladimir Putin next week, despite ongoing U.S. threats to impose secondary sanctions that could include China, as part of pressure on Russia to end the war in Ukraine. It is worth noting that Russia is classified as the second largest oil producer globally after the United States.

Data from the U.S. Energy Information Administration, which showed a decrease in crude oil inventories by 3 million barrels last week, contributed to supporting prices. Inventories reached 423.7 million barrels, a larger decline than analysts' expectations, who predicted a decrease of only 591,000 barrels according to a Reuters survey. This decline is attributed to increased U.S. exports and higher refinery utilization rates.

Hiroyuki Kikukawa, senior analyst at Nissan Securities, noted that investors remain cautious due to the instability of U.S.-Russian talks and fluctuations in supply and demand markets, as well as ongoing production increases by major producers.

Kikukawa added: "The uncertainty surrounding the upcoming U.S.-Russian summit, along with potential additional tariffs on India and China, both major buyers of Russian crude, and the broader impact of U.S. tariffs on the global economy, are all factors driving investors to be cautious."

He expected West Texas Intermediate crude to remain within the range of $60 to $70 during the remainder of the month, especially with planned increases in OPEC+ production.

Trump announced yesterday, Wednesday, the imposition of an additional 25% tariff on Indian imports, justifying this by India's continued purchase of Russian oil, with these tariffs to take effect after 21 days. He also threatened to impose similar tariffs on China due to its continued purchases of Russian crude.

Markets remain on alert for developments in political and trade events, which could significantly impact oil price trends in the coming period.