Oil Holds Three-Day Rally
Global oil prices stabilized after three consecutive days of gains. The market weighed US President Donald Trump's latest comments on Russia and the possibility of punitive measures for the war in Ukraine. Trump's tweet questioning the Polish airspace violation incident triggered a brief price spike due to the closing of short positions.
West Texas Intermediate (WTI) prices hovered around $64 per barrel on Thursday, after rising 1.7% in the previous session. Brent held above $67 per barrel, indicating continued positive sentiment despite market caution.
Trump also told European Union officials that he was willing to increase tariffs on India and China, two major buyers of Russian oil, to pressure Moscow to negotiate—but only on the condition that EU countries participate. So far, the new tariffs have only been directed at India.
Fundamentally, oil has remained weak this year. The market anticipates a potential oversupply by the end of 2025, which could put pressure on prices. In the US, crude inventories rose by 3.9 million barrels last week, although they remain below the five-year average, according to government data. (ayu)
Source: Bloomberg
