Oil prices experienced fluctuations amid geopolitical developments and shifts in U.S. crude inventories in mid-August 2025. Initially, oil prices dipped as traders focused on U.S. President Donald Trump's meetings with Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin, which increased pressure on Ukraine to consider a territorial agreement with Russia. Brent crude rose to $66.52 and WTI to $63.40 as Zelenskiy arrived in Washington for talks with Trump, though expectations for a rapid ceasefire between Ukraine and Russia were tempered, maintaining market uncertainty. Subsequent peace talks between Russia and Ukraine raised the prospect of easing sanctions, contributing to a decline in oil prices below $66. However, attacks on pipelines and refineries underscored ongoing conflict risks. U.S. crude oil inventories fell sharply by 6.014 million barrels in the week ending August 15, significantly exceeding forecasts and reversing previous increases, while gasoline stocks declined by 2.72 million barrels and distillate inventories rose by 2.343 million barrels. This inventory drawdown supported a rebound in oil prices, with Brent climbing near $67 and WTI settling around $63.81. Despite the inventory data, traders remained cautious due to the International Energy Agency's projection of a 2025 supply surplus driven by OPEC+ production and U.S. trade policies. Saudi Arabia's crude exports slightly decreased in June compared to May, while crude inventories increased. Overall, the oil market remains influenced by geopolitical tensions related to the Ukraine conflict, U.S. diplomatic efforts, and fluctuating supply-demand dynamics reflected in inventory reports.