(Bloomberg) — Oil fluctuated as investors weighed an increasingly bearish supply outlook against slowing progress in peace talks over the war in Ukraine.
West Texas Intermediate for October delivery edged higher to around $63 a barrel, though still hovered near two-month lows as Wednesday’s expiry of the previous contract added volatility to the low-volume trading. For the past 10 sessions, US oil futures have been locked in a tight range between about $62 and $65 a barrel.
Most Read from Bloomberg
Investors have continued to parse a mixed US crude stockpile report that included the biggest overall decline since mid-June but a seventh straight weekly buildup at the storage hub of Cushing, Oklahoma. The delivery point for West Texas Intermediate futures has seen a recent surge in supplies from the Permian Basin.
Investors are also watching the progress toward a Russia-Ukraine ceasefire following a series of high-level talks brokered by President Donald Trump. The US has worked to set up a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, though the Kremlin so far has proved noncommittal and no date or location for the summit has been set. Any peace deal may lead to fewer restrictions on Russia’s crude exports, although Moscow has largely kept its oil flowing despite an array of sanctions.
Oil has dropped more than 10% this year on concerns that US tariffs will hurt economic growth just as OPEC+ nations are returning idled production, raising expectations for a glut once peak summer demand ends.
US gasoline stockpiles also declined for a fifth straight week, offering a reminder that, while many traders expect a surplus later this year, global inventories are still abnormally low. Jet fuel demand remains strong.
“The market continues to weigh a mix of bullish and bearish drivers that, which together with thin summer liquidity, are keeping prices boxed in,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.