Oil prices experienced a modest decline on Friday but were poised for their first weekly gain in three weeks following the resumption of trade negotiations between U.S. President Donald Trump and Chinese President Xi Jinping. This development rekindled hopes for increased demand growth from the world’s two largest economies, underpinning positive sentiment in global energy markets.
Oil prices declined on Thursday following reports of increased gasoline and distillate inventories in the United States, combined with Saudi Arabia’s decision to reduce crude oil prices for Asian customers in July. These developments occurred against the backdrop of persistent global economic uncertainty, which continues to weigh on energy demand forecasts. Brent crude futures fell by $0.14, or 0.2%, to $64.72 per barrel, while West Texas Intermediate (WTI) futures in the US declined by $0.24, or 0.4%, to $62.61 per barrel as of 05:00 GMT.
The Russian Ministry of Economy has revised its forecast for the average price of Brent crude oil in 2025, cutting the estimate by nearly 17% compared to the previous outlook released in September. The earlier prediction stood at USD 81.7 per barrel, while the new baseline scenario now anticipates a price of USD 68 per barrel. This adjustment not only impacts the global oil market dynamics but also influences the country’s fiscal planning designed around higher price expectations.
The oil market remains volatile as recent price declines highlight the impact of geopolitical and economic factors. A drop of more than 1.5% on Monday has intensified concerns over potential US tariffs on goods from international trading partners, factors that could ultimately hinder global fuel demand growth.
The global oil market is currently grappling with significant volatility, driven by the ongoing trade conflict between the United States and China. Concerns over declining economic growth and falling crude oil demand are weighing on prices, impacting major benchmarks as well as regional markets. This article offers an in-depth review of external factors affecting oil prices, analyzes the latest data, and provides an expert assessment of the evolving situation.
Recent developments in the oil market have highlighted a period of upward price pressure despite a slight pullback on Friday. Prices remain near a monthly high, continuing a three-week upward trend influenced by global supply restrictions. These restraints follow the United States imposing tariffs on countries purchasing Venezuelan oil and limitations on Iranian oil trade. The current market behavior reflects a complex interplay of geopolitical tensions and economic factors impacting global oil supplies.
On Thursday, oil prices remained steady following a recent increase that reached their highest levels since February. The market is currently influenced by several factors affecting price movements: new U.S. tariffs, reduced oil reserves in the U.S., and uncertainty surrounding global supply.
Recent developments in the oil market have drawn the attention of industry experts. On Thursday, a slight yet sustained increase in oil futures prices was observed, primarily due to new threats by the United States to impose tariffs on buyers of Venezuelan crude, coupled with previously implemented sanctions against Iranian oil buyers. This scenario, alongside declining inventories in the United States, contributes to a complex dynamic on the global energy market.
The global energy markets once again demonstrated their sensitivity to geopolitical events. On Thursday, October 19, oil prices decreased following reports of potential peace talks between Ukraine and Russia. The anticipation of easing sanctions and the associated risks to oil supplies became a key driver of the changing market sentiment.
