Oil prices rise by 1% after five days of decline
7 August 2025 09:26
On Thursday, oil prices rose by 1%, breaking a five-day losing streak, due to signs of stable demand in the United States, the world’s largest oil consumer. At the same time, uncertainty over the macroeconomic impact of US tariffs limited growth, "Komersant Ukrainian" reports citing Reuters.
Brent crude oil futures rose 62 cents (0.9%) to $67.51 per barrel as of 06:42 Kyiv time. U.S. WTI crude rose 68 cents (1.1%) to $65.03 per barrel.
“Progress with Moscow”
On Wednesday, both benchmarks fell by about 1% to their lowest levels in eight weeks after US President Donald Trump’ s statements about progress in negotiations with Moscow.
According to a White House official, Trump may meet with Russian President Putin next week. At the same time, the United States continues to prepare for the introduction of secondary sanctions, possibly against China, to force Moscow to end the war in Ukraine.
Russia is the second largest producer of crude oil after the United States.
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Stocks and demand
Oil markets were supported by a decline in US crude stockpiles last week. The Energy Information Administration reported that U.S. crude oil inventories fell by 3 million barrels to 423.7 million barrels in the week ended August 1. This exceeded the forecasts of Reuters analysts, who expected a decrease of 591 thousand barrels.
Stocks declined due to rising U.S. oil exports and increased refinery utilization. Capacity utilization on the Gulf Coast – the country’s largest oil refining region – and the West Coast has reached its highest level since 2023.
JP Morgan analysts noted that global oil demand averaged 104.7 million barrels per day by August 5, which corresponds to an annual increase of 300 thousand barrels per day, but 90 thousand barrels below their forecast for the month.
“Despite a somewhat weaker start to the month than we expected, high-frequency oil demand indicators suggest that global oil consumption is likely to improve steadily over the coming weeks,”
– the analysts said, expecting consumption to rise thanks to aviation fuel and petrochemical feedstocks.
Tariffs against China and India
However, global macroeconomic uncertainty after the US imposed new tariffs on Indian goods has limited price increases.
On Wednesday, Trump imposed an additional 25% duty on Indian goods, citing continued imports of Russian oil. The new import tax will take effect on August 28.
“Although these new duties are set to take effect in three weeks, markets are already pricing in further impacts on trade flows, emerging market demand, and broader energy diplomacy,”
– said Priyanka Sachdeva, senior analyst at Phillip Nova.
Trump also said that he may announce additional tariffs on China, similar to the 25% tariffs previously imposed on India over its purchases of Russian oil.
“The tariffs are likely to hurt the global economy, which will ultimately affect fuel demand,”
– Sachdeva said, adding that markets are not taking into account the fact that the impact on the US economy and inflation will be much greater.
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