Oil Prices Rise as Markets Focus on Crucial US-Russian Talks

Oil prices saw a slight increase today, Thursday, August 14, as investors assessed the potential impacts of the US-Russian summit scheduled for tomorrow, Friday, regarding the Ukrainian crisis, which could affect Russian oil flows and increase the risks of secondary sanctions on buyers.

Brent crude futures rose to $66.08 per barrel, marking an increase of 0.7%, while West Texas Intermediate crude increased to $63.09 by the same percentage. This rise followed a drop in prices yesterday, Wednesday, to their lowest levels in two months due to reports indicating an increase in oil supply.

In this context, US President Donald Trump warned of "severe consequences" if the meeting in Alaska does not yield progress towards resolving the Ukrainian crisis, raising concerns about the imposition of new sanctions on Russia. The company "Rystad Energy" commented that "the uncertainty surrounding the talks adds a premium of upward risk to oil prices, especially with the possibility of Russian oil buyers facing additional economic pressures."

Additionally, expectations of a Federal Reserve interest rate cut next month supported prices, while reports of a surprise increase in US inventories and the International Energy Agency's forecasts of increased global production over the next two years limited price gains.

The oil market continues to react to geopolitical factors and supply levels, with traders' attention focused on the outcomes of the US-Russian talks and developments in OPEC+ production policies.