Crude Oil Prices Dip Slightly in Asia on Aug 22 Amid Geopolitical Tensions

Crude Oil prices edged lower during Asian trading hours on Friday, as investor caution prevailed ahead of a key speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, an event that could provide further insight into the trajectory of U.S. monetary policy.

Despite the modest decline, crude benchmarks remained on track for a weekly advance, buoyed by mounting concerns over stalled peace efforts between Russia and Ukraine, which continue to stoke fears of potential supply disruptions.

Adding further support to the market were indicators of robust U.S. fuel demand, underscored by a larger-than-expected drawdown in crude stockpiles.

As of 21:20 ET (01:20 GMT), Brent crude futures slipped 0.2% to $67.51 per barrel, while West Texas Intermediate (WTI) futures declined 0.3% to $62.95 per barrel.

Crude Poised for Weekly Rise as Diplomatic Hopes Dim

Brent and WTI are on pace to post weekly gains between 1.5% and 3%, recovering losses from earlier in the week. Sentiment improved as traders increasingly doubted any near-term resolution to the Russia-Ukraine conflict.

Efforts by the U.S. to mediate a peace deal appeared to lose traction, despite high-profile meetings involving former President Donald Trump, Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, and European leaders. The lack of progress has reinforced concerns about prolonged geopolitical instability and its impact on energy supplies.

Strong U.S. Demand Lends Additional Support

On the demand side, optimism about U.S. consumption also contributed to oil’s resilience. The U.S., the world's largest oil consumer, reported a surprise inventory drop of 6 million barrels for the week ending August 15—far exceeding analyst expectations and pointing to healthy demand conditions.

Also Read: Gifty Nifty Signals a Flat to Negative Start for NSE and BSE on Aug 22

Markets now await further signals from the Federal Reserve, with Powell’s speech at Jackson Hole likely to shape risk sentiment and influence the broader commodities landscape in the coming days.

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