Oil prices were stable on Friday as optimism for an imminent peace deal between Russia and Ukraine faded, keeping the market on track for its first weekly gain in three weeks.
Brent crude oil, against which Nigerian crude oil is measured, rose 8 cents or 0.1% to $67.75 per barrel at 08:15 a.m. in Nigeria, while West Texas Intermediate (WTI) crude added 12 cents or 0.2% to $63.64 per barrel.
Both benchmarks had gained more than 1% in the previous session, with Brent advancing 2.8% so far this week and WTI up 1.4%.
The continued conflict between Russia and Ukraine weighed on peace negotiations. Russia launched an airstrike near Ukraine’s border with the European Union on Thursday, while Ukraine retaliated with attacks on a Russian refinery and the Unecha oil pumping station, a critical link in the Druzhba pipeline that supplies Europe.
Efforts by U.S. President Donald Trump to arrange a summit between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy faced significant challenges.
Putin has demanded Ukraine cede the Donbas region, renounce NATO membership, and restrict Western troop presence, while Zelenskiy has rejected any concession of internationally recognized Ukrainian territory.
Analysts at ING warned that the failure to reach a ceasefire increases the risk of tougher U.S. sanctions on Russia.
Prices also found support from U.S. Energy Information Administration (EIA) data showing a larger-than-expected fall in crude stockpiles.
U.S. crude inventories fell by 6 million barrels for the week ending August 15, compared to analysts’ forecasts of a 1.8 million barrel draw.
However, weak macroeconomic indicators tempered gains. Data released on Friday showed that Germany’s economy contracted by 0.3% in the second quarter, fueling concerns over European oil demand.
Investors are also watching developments at the Jackson Hole economic conference in Wyoming, where U.S. Federal Reserve Chair Jerome Powell is scheduled to speak.
Markets are looking for signals of a possible rate cut next month. Lower interest rates generally stimulate economic growth and could lift oil demand.
The oil market remains caught between geopolitical tensions, supply risks, and concerns over slowing economic growth. With ceasefire prospects dim and sanctions risks elevated, analysts expect prices to remain volatile in the near term, while supply fundamentals and monetary policy expectations continue to influence market direction.
