Oil edges up on signs of strong demand, Russia-Ukraine peace uncertainty

REUTERS:  Oil prices edged up yesterday, bolstered by signs of strong demand in the United States, with uncertainty over efforts to end the war in Ukraine also lending support.

Brent crude futures were up 11 cents, or around 0.2 percent, at US$ 66.95 a barrel at 1335 GMT, having hit a two-week high earlier in the session. U.S. West Texas Intermediate was up 6 cents at US$ 67.77.

Both contracts climbed over 1 percent in the prior session.

Russia said on Wednesday that attempts to resolve security issues relating to Ukraine without Moscow’s participation were a “road to nowhere.”

“If the White House’s efforts do result in a halt to hostilities in Ukraine, and Russia gradually coming back into the international fold, it will be bearish for the crude market,” said independent analyst Gaurav Sharma. “But for now, the Brent price floor to watch out for remains at US$ 65 a barrel.”

U.S. President Donald Trump has announced an additional tariff of 25 percent on Indian goods from August 27 because of India’s Russian crude purchases, which make up nearly 35 percent of its overall oil imports. Russian embassy officials in New Delhi said on Wednesday that Moscow expects to continue supplying oil to India despite U.S. warnings.