Oil prices experienced a significant uptick on July 25, 2025, as optimism surrounding global trade negotiations bolstered economic and oil demand outlooks. Brent crude reached a one-week high at $69.47 per barrel, while U.S. West Texas Intermediate (WTI) increased to $66.32. This surge was primarily driven by positive developments in U.S. trade deals, including a finalized agreement with Japan and potential progress with the European Union. These trade advancements outweighed concerns about increased oil supply from Venezuela, where production could rise by over 200,000 barrels per day if the U.S. permits companies like Chevron to resume limited operations. The heavier crude produced would benefit U.S. refiners. Additionally, a significant U.S. crude inventory draw of 3.2 million barrels, double analyst expectations, further supported the price increase. Analysts noted that oil holding above the $65/$64 range suggests potential for a rebound toward $70. Upcoming economic data from China and the U.S. are expected to influence market sentiment further.
The positive momentum in the oil market was also supported by reduced Russian gasoline exports, which contributed to the price rise. Despite the weekly gain of 0.4% in Brent crude, WTI declined by 1.4%. Factors boosting oil prices included the substantial U.S. crude inventory draw and the optimism surrounding trade negotiations. Analysts highlighted that the rebound from the $65/$64 level suggests a possible movement toward $70 if the positive trend continues. Investors are closely monitoring upcoming economic data from China and the U.S., including factory activity, inflation, jobs, and inventory figures, to gauge the sustainability of the current price levels.