Oct 24, 2025 (MarketLine via COMTEX) --
Crude oil prices increased overall during the week on prospects of tight crude oil supplies from Russia due to fresh Western sanctions on its entities. The latest round of western sanctions targeted RussiaaEUR(TM)s largest oil producers, namely Rosneft and Lukoil, to curb exports and thus weigh on the countryaEUR(TM)s revenues. Additionally, Europe was preparing itsown sanctions on LNG purchases from the country. Prices also received support from hopes of the US reaching trade deals with China and India in near future on tariffs. This could ease tensions among these major markets and potentially give fillip to the global economy. Prices had initially declined earlier in the week over the US-China tariff dispute, butthose concerns were mitigated due to reports over plans for fresh discussions.
Some key factors that led to changes in crude oil prices this week are as follows:
- Oil prices dipped on Monday, weighed down by worries over a likely slowdown in global trade amid the tariff dispute
between the US and China. The World Trade Organization said that it was working to diffuse tensions between these
two countries to mitigate any impact on the global economic output, estimated to be around 7% over the long term.
Besides, prominent US companies, including ExxonMobil, Amazon, and Oracle were lobbying the Trump administration
to rollback a restriction on goods and technology exports that could cost them significant business in markets, such as
China.
- Oil prices rose slightly on Tuesday and then gained on Wednesday, supported by reports that the US was negotiating
trade deals with China and India. Such a development might lift trade with these high-growth markets and support global
economic growth. A key topic of discussion for the US with both these trading partners is their purchases of Russian
crude oil, against the backdrop of conflict with Ukraine. The US President Trump is scheduled to meet the Chinese
President Xi next week in South Korea where they will discuss import tariffs and other issues. The US was also reportedly
working to lower its tariffs on India, from the current 50% to around 15%, with an agreement likely to be finalized next
month. Additionally, the US followed the UK in sanctioning Rosneft and Lukoil in an attempt to pressurize Russia into a
peace deal with Ukraine.
- Oil prices gained last Thursday and then remained largely firm on Friday, supported by expectations of reduced crude
oil exports from Russia due to a host of sanctions on its entities. These involved the new sanctions on oil producers
Rosneft and Lukoil, that collectively accounted for around 5% of the global oil supplies. The US was ready to add more
restrictions on Russia to achieve a ceasefire in the protracted Ukraine conflict. Even the European Union (EU) had largely
finalized its 19th sanctions package, which included a complete ban on LNG imports from Russia and sanctions of three
entities from China. Prices also received some support from reports that both China and India – the biggest importers
of Russian crude oil – were considering alternative suppliers to comply with sanctions. Additionally, a weekly US crude
and fuel stockpiles dip lent further support to oil prices. According to the US Energy Information Administration (EIA)
data, crude inventory in the country was down by 961,000 for the week ending on October 17, 2025. Gasoline and
distillate fuel inventory also fell by 2.1 million barrels and 1.5 million barrels during the same week.
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COMTEX_469930351/2227/2025-10-31T09:37:41
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