Oil prices rise due to optimism about trade negotiations
25 July 2025 08:46
Oil prices rose on Friday as optimism about trade negotiations supported the outlook for both the global economy and oil demand. This is reported by "Komersant Ukrainian" with reference to Reuters.
According to OilPrice.com, Brent crude oil futures hit a one-week high and rose 32 cents, or 0.46%, to $69.50 per barrel as of 08:39 Kyiv time. Futures for West Texas Intermediate crude rose 29 cents, or 0.44%, to $66.32. Brent rose by 0.4% this week, while WTI fell by 1.4%.
Oil, along with stock markets, received support from the prospects of additional trade agreements between the US and its trading partners before August 1, when the US will impose new tariffs on goods from a number of countries.
The United States announced a trade deal with Japan on Wednesday, followed by two European diplomats saying that the European Union is moving toward a deal that would impose a baseline 15% U.S. tariff on EU imports plus possible exemptions.
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Venezuela is making a comeback
“Optimism about trade talks seems to be offsetting expectations for stronger Venezuelan supply,”
– iNG analysts wrote in a client note on Friday.
The United States is preparing to allow partners of the state-owned Venezuelan company PDVSA, starting with the American oil giant Chevron, to operate with restrictions in the country under sanctions, sources said on Thursday.
Venezuelan oil exports could increase by just over 200,000 barrels per day as a result, which would be good news for US refiners as it would ease tensions in the heavy oil market, ING analysts wrote.
The situation in the United States
The market was also supported by a decline in US oil stocks. Data from the U.S. Energy Information Administration on Wednesday showed that crude oil stocks fell by 3.2 million barrels to 419 million barrels last week, far exceeding the 1.6 million barrel decline predicted by analysts in a Reuters poll.
“I am encouraged by the way crude oil has held on and bounced back from $65/64 support this week, leaving hopes of a recovery to the $70 level,”
– said Tony Sycamore, an analyst at IG, adding that next week will bring data for traders to consider.
Next week’s economic data from the world’s largest economies and oil consumers will include Chinese factory activity and US inflation, employment and inventories.
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