US special envoy Steve Witkoff is expected to travel to Russia this week, ahead of Trump’s Aug. 8 deadline for Moscow to reach a truce with Ukraine. The Kremlin is weighing options for a concession that could include an air truce, even as it remains determined to continue the war.
Oil has edged lower after three months of gains, with a focus on headwinds to growth in the US that may hurt energy demand, as well as a move by OPEC+ to roll back output curbs. Last weekend, the alliance agreed to raise production from September by about 547,000 barrels a day, boosting concerns that global supplies will run ahead of consumption this half.In the US, data showed the services sector effectively stagnated in July, aligning with other signals that the economy is flashing warning signs. Figures last week showed a much weaker labor market than previously thought.
Meanwhile, petroleum industry estimates painted a mixed picture of moves in US stockpiles. Nationwide crude holdings fell 4.2 million barrels last week, although oil reserves at the key hub in Cushing, Oklahoma, rose, along with distillate inventories. An official breakdown is due later Wednesday.
Some metrics point to softer conditions. Brent’s prompt spread — the difference between its two nearest contracts — was 69 cents a barrel in backwardation, compared with more than $1 a month ago. While still a bullish pattern, with near-term prices above the next in line, the trend suggests a weakening.
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