Oil Prices Steady After Weekly Gains Amid Global Supply Tensions

2 min read     Updated on 25 Aug 2025, 06:47 AM
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Reviewed by
Anirudha BasakBy ScanX News Team
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Overview

Oil prices remain steady with Brent crude near $68.00 and WTI above $63.00 per barrel. The U.S. threatens to double tariffs on Indian imports to 50% due to India's continued Russian oil purchases. Federal Reserve Chair Powell's comments on potential interest rate cuts boost oil market optimism. OPEC+'s decision to resume idled production raises oversupply concerns, keeping Brent crude about 9% lower year-to-date. Geopolitical tensions, including President Trump's warning to Russia over Ukraine, add uncertainty to the oil market.

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*this image is generated using AI for illustrative purposes only.

Oil prices held firm following a week of gains, with Brent crude hovering near $68.00 per barrel and West Texas Intermediate (WTI) maintaining its position above $63.00. This stability comes after a notable surge of nearly 3% in the previous week, reflecting the complex interplay of global economic factors and geopolitical tensions affecting the oil market.

US-India Trade Tensions Over Russian Oil

The United States has threatened to escalate its trade measures against India, considering doubling tariffs on Indian imports to 50%. This aggressive stance is directly linked to India's continued purchases of Russian oil, which have been a point of contention in international relations.

Despite the looming threat of increased tariffs, Indian diplomats have indicated that local processors will continue their procurement of Russian crude. This stance underscores the strategic importance of energy security for India and highlights the challenges in aligning global trade policies with geopolitical objectives.

Federal Reserve Signals and Market Response

The oil market, along with other risk assets, received a boost following comments from Federal Reserve Chair Jerome Powell. Powell's signals suggesting potential interest rate cuts have injected optimism into commodity markets. This prospect of monetary easing typically supports demand for oil and other commodities by potentially stimulating economic growth.

OPEC+ Production and Market Oversupply Concerns

Despite the recent price stability, Brent crude has been trading within a narrow range. The summer season has brought thin trading volumes, contributing to this constrained price movement. Year-to-date, Brent crude remains approximately 9% lower, primarily due to persistent concerns about market oversupply.

The oversupply worries stem from OPEC+ decision to resume previously idled production. This increase in output has put downward pressure on prices, counterbalancing some of the bullish factors in the market.

Geopolitical Tensions and Oil Market Implications

Adding another layer of complexity to the oil market dynamics, President Trump has recently issued a stern warning to Russia. The threat of "massive sanctions" unless a deal on Ukraine is reached has introduced additional uncertainty into the global oil trade. However, Trump also noted that Washington's options might be limited in this scenario.

This geopolitical tension, coupled with the ongoing US-India dispute over Russian oil purchases, underscores the intricate web of international relations that continues to influence oil prices and global energy markets.

As the oil market navigates these multifaceted challenges, from supply concerns to geopolitical pressures and monetary policy shifts, traders and analysts will be closely monitoring developments that could sway prices in the coming weeks.

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Oil Prices Set to Break Two-Week Losing Streak Amid Ongoing Ukraine Conflict

1 min read     Updated on 22 Aug 2025, 08:00 AM
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Reviewed by
Shraddha JoshiBy ScanX News Team
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Overview

Oil prices remained stable on Friday but are poised to end a two-week losing streak. Brent crude futures settled at $67.63 per barrel, while WTI crude closed at $63.51. Both benchmarks are on track for weekly gains. The ongoing Russia-Ukraine conflict, with recent air attacks and strikes, has diminished hopes for an immediate resolution. Peace talks have shown limited progress due to firm positions from both sides. Unexpected U.S. crude inventory drawdown of 6 million barrels, exceeding analysts' expectations, provided additional support to oil prices. Market participants are monitoring the Jackson Hole economic conference for potential Federal Reserve interest rate policy signals.

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*this image is generated using AI for illustrative purposes only.

Oil prices remained relatively stable on Friday but are poised to end a two-week losing streak as hopes for an immediate resolution to the Russia-Ukraine conflict fade. The ongoing geopolitical tensions and unexpected U.S. inventory drawdown have provided support to crude oil prices.

Market Performance

Brent crude futures experienced a marginal decline of $0.04, settling at $67.63 per barrel. Similarly, West Texas Intermediate (WTI) crude saw a slight dip of $0.01, closing at $63.51. Despite these minor setbacks, both benchmarks are on track for weekly gains, with Brent up 2.70% and WTI rising 1.10% for the week.

Geopolitical Tensions

The conflict between Russia and Ukraine has intensified, contributing to the upward pressure on oil prices:

  • Russia conducted air attacks near Ukraine's border with the European Union
  • Ukraine launched a strike on a Russian oil refinery

These developments have diminished prospects for an immediate peace agreement between the two nations.

Peace Negotiations Stall

Peace talks have shown limited progress, with both sides maintaining firm positions:

  • Russian President Vladimir Putin demands that Ukraine surrender the Donbas region and renounce NATO membership
  • Ukrainian President Volodymyr Zelenskiy has rejected withdrawing from recognized Ukrainian territory

The lack of compromise in negotiations has reduced expectations for a swift resolution to the conflict, potentially supporting oil prices in the near term.

U.S. Crude Inventory Surprise

Oil prices received additional support from unexpected U.S. crude inventory data:

  • U.S. crude stockpiles decreased by 6 million barrels
  • This significant drawdown far exceeded analysts' expectations of a 1.8 million barrel decline

The substantial reduction in U.S. crude inventories suggests stronger-than-anticipated demand, providing a bullish signal for oil markets.

Economic Outlook

Market participants are closely monitoring the Jackson Hole economic conference for potential signals regarding Federal Reserve interest rate policies. Any indications of future monetary policy could impact the U.S. dollar and, consequently, oil prices.

As geopolitical tensions persist and economic factors remain in focus, oil markets are likely to continue experiencing volatility in the coming weeks. Traders and analysts will be watching closely for any developments that could influence global oil supply and demand dynamics.

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