Brent crude gained to $68.84/barrel and U.S. WTI to $66.77 as markets responded favorably to robust summer travel demand in the U.S. and China, balancing off world growth warnings and tariff concerns. OPEC officials are optimistic but cautious regarding economic recovery for the second half of 2025, but concede that trade tensions can inhibit demand. Saudi Arabia, for instance, had increased output earlier this year, but global oil storage remains high because of conflicting economic signals and tariff ambiguities.
Market prices are generally vulnerable to geopolitical events, particularly U.S. protectionist policies and new supply-demand imbalances. Traders are closely monitoring import figures, and a flare-up of U.S.–China or U.S.–EU hostilities could either reduce demand or inject volatility into markets that are still getting used to new market pricing.
