Crude oil prices remained stable on Friday, August 22, as investors weighed uncertainties surrounding potential peace negotiations between Russia and Ukraine. Notably, oil recorded its first weekly gain after three consecutive weeks of declines.
At the close, Brent crude edged up 0.09% to $67.73 per barrel, while WTI crude added 0.22% to $63.66 per barrel. Both benchmarks had climbed more than 1% in the previous session. For the week, Brent gained 2.9% and WTI rose 1.4%.
U.S. President Donald Trump said Friday he is considering whether Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy can cooperate to end the war, which has dragged on for over three years.
Despite these efforts, tensions escalated as Russia launched an airstrike near the Ukraine-EU border on August 21. In response, Ukraine claimed it attacked a Russian oil refinery and the Unecha pumping station, a critical part of Russia’s Druzhba pipeline that supplies Europe. This disruption could halt Russian oil flows to Hungary and Slovakia for at least five days.
Russian Foreign Minister Sergei Lavrov dismissed any plans for a near-term summit, accusing Ukraine of rejecting proposals. Analysts at ING warned:
“The lower the chances of a ceasefire, the higher the risk of harsher U.S. sanctions on Russia.”
Prices also received support from stronger-than-expected draws in U.S. crude inventories. According to the Energy Information Administration (EIA), stockpiles fell by 6 million barrels in the week ending August 15, far exceeding the forecasted 1.8 million-barrel decline.
Meanwhile, the U.S. oil and gas rig count dropped for the fourth time in five weeks, signaling potential output constraints. Data from Baker Hughes showed active rigs fell by one to 538, the lowest since mid-July 2025.
On the same day, Federal Reserve Chair Jerome Powell hinted at the possibility of a rate cut at next month’s policy meeting, though he stopped short of making a firm commitment. Lower interest rates could boost economic growth and fuel demand, providing additional support for oil prices.
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