Oil Prices Close Positive, Brent Nears $66 per Barrel
In the global commodity market, the prices of crude oil closed the week higher on expectations of US interest rate cuts and heightened geopolitical focus ahead of a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin.
International benchmark Brent crude traded at $65.97 per barrel on Friday, up 0.2% from last week’s close of $65.83. US benchmark West Texas Intermediate (WTI) stood at $62.70 per barrel, a marginal increase from last Friday’s close of $62.69.
Overall, the week’s oil price movements were driven by the interplay of expected monetary easing, US-China trade developments, supply concerns tied to Russia, and inventory data from the world’s largest oil consumer.
The week began with a slight dip on Monday as investors awaited the Alaska talks, negotiations aimed at easing tensions between the US and Russia amid the ongoing Russia-Ukraine conflict, which could influence global oil supply.
Prices recovered on Tuesday after President Trump announced a 90-day delay on planned tariff increases on Chinese goods, a move seen as supportive of economic activity and energy demand.
Also, Ukrainian President Volodymyr Zelensky’s push for India, one of the largest buyers of discounted Russian crude, to restrict Russian oil exports added upward pressure to prices this week.
Analysts note that if India were to restrict its imports, it could tighten global oil supply, adding upward pressure on prices by reducing one of Russia’s key export markets. However, continued uncertainty over US-Russia talks and inflation concerns limited further gains.
Oil retreated slightly on Wednesday following forecasts indicating a rise in US crude inventories, signaling weaker demand in the world’s largest consumer.
Analysts also noted that the Energy Information Administration revised its 2025 Brent crude forecast downward, reflecting expectations of slower price growth in the coming quarters. Thursday saw prices edge higher on anticipation of a Federal Reserve rate cut, supported by moderate US inflation data.
Money market pricing shows a 94% chance the Fed will cut interest rates at its September meeting, with a quarter-point move still widely expected and the odds of a half-point cut remaining low. Lower policy rates are expected to boost US economic activity, supporting higher oil demand. Geopolitical tensions ahead of the Alaska summit continue to influence the market.
Markets focused on the Trump-Putin meeting this week, with uncertainty surrounding potential outcomes keeping prices supported. Experts suggest that any progress toward a ceasefire could alleviate supply worries and weigh on oil prices, while a lack of agreement might keep prices elevated. #Oil Prices Close Positive, Brent Nears $66 per Barrel FG Unveils N10m Interest-Free Loan Scheme for Staff in Tertiary Institutions
