Thursday’s developments saw Russia escalate air attacks near the EU border, while Ukraine struck a key Russian refinery and the Unecha oil station, disrupting flows through the Druzhba pipeline. Hungary confirmed pipeline deliveries were halted. These developments have raised concerns about supply risks in Europe, lending support to Brent and WTI.
Crude Draw and Fed Watch Keep Traders Engaged
Fundamentals also offered tailwinds this week, with U.S. crude inventories falling by 6 million barrels—well above analyst expectations of a 1.8 million barrel draw. The surprise decline suggests firm demand despite broader economic headwinds.
Still, weak Q2 GDP data from Germany, which showed a 0.3% contraction, added demand-side concerns for European crude consumption. Meanwhile, traders are eyeing comments from Fed Chair Jerome Powell at the Jackson Hole symposium for clues on monetary policy. A potential rate cut could support economic growth and, in turn, oil demand.
Oil Prices Forecast: Bullish Bias Holds Above Key Support
With WTI holding above its 200-day moving average and geopolitical risk back in focus, the short-term outlook for oil prices remains cautiously bullish. A breakout above the 50-day MA at $65.00 could accelerate gains, but traders should stay alert to economic signals and global political developments, as key risks remain finely balanced.
More Information in our Economic Calendar.
