Crude oil prices edged upward today as stronger-than-expected U.S. demand indicators combined with sharper-than-forecast inventory declines bolstered market sentiment.
Brent crude reached a two‑week high of $67.11 per barrel, while U.S. West Texas Intermediate (WTI) rose to $63.00 per barrel. Both benchmarks were building on gains of over 1 percent from the previous trading day.
Analysts attributed the uptick to robust summer travel demand and continued geopolitical tensions, particularly stemming from the war in Ukraine.
The latest U.S. Energy Information Administration report revealed a striking 6‑million‑barrel drawdown in crude inventories, far exceeding analysts’ expectations of a 1.8‑million‑barrel drop.
Gasoline stocks also fell by 2.7 million barrels, and jet fuel consumption surged to its highest four‑week average since 2019 clear indicators that travel and transport activity remains strong across the United States.
Market watchers point to a confluence of factors underpinning price dynamics. On the demand side, the sharp decline in inventories signals tightening supply conditions.
On the supply side, lingering geopolitical tensions especially around Russia and Ukraine continue to weigh on market outlooks.
The persistence of Western sanctions on Russian crude, combined with uncertainty over a peace settlement, has heightened risk perception and supported prices.
Adding to the supportive environment, a modest decline in the U.S. dollar has helped buoy commodity markets, including crude oil, by making dollar‑denominated assets more attractive to holders of other currencies.
Industry sentiment remains cautiously optimistic. While strong consumption patterns especially for jet fuel suggest sustained demand, analysts are mindful of potential downside risks.
Should there be progress in resolving the Ukraine conflict or a release of idle OPEC+ capacity, prices could come under pressure. Conversely, any further disruptions to supply would likely propel prices higher from current levels.
In summary, as of August 21, 2025, crude oil markets are firming, with Brent trading at $67.11 and WTI at $63.00 per barrel. Tight U.S. stocks, robust fuel consumption, and geopolitical uncertainty are driving prices upward.
Market participants will be watching closely for developments on geopolitical fronts and central bank signals that could influence both demand and investor sentiment in the weeks ahead.
Written By Ian Maleve
