By Osama Al Saifi, Managing Director, MENA, Traze
Juky 25, 2025
Crude oil futures rebounded on optimism as US trade negotiations progress. The latter could help alleviate strain on global economic growth and oil demand. The US-Japanese agreement over a deal, which lowers duties on automobile imports while securing significant investment commitments in the US, has lent support to prices. Meanwhile, advancing talks between Washington and the European Union raise hopes of further trade easing, potentially strengthening expectations around demand for crude. Yet, lingering uncertainties around the scope and timing of these agreements could moderate enthusiasm, suggesting limited near-term upside.
At the same time, a sharper-than-anticipated draw in U.S. crude inventories reinforced bullish sentiment. Gasoline stocks also declined, although distillate levels rose.
Meanwhile, recent peace talks between Russia and Ukraine made little headway, while new Russian port rules have temporarily halted foreign oil tanker activity at key Black Sea ports, disrupting exports. US considerations of expanded sanctions on Russian oil could support the market to a certain extent.