Oil prices fluctuated last week, initially rising due to geopolitical tensions but later retreating as uncertainty clouded the market. Prices surged after the European Union (EU) expanded sanctions on Russia and reports surfaced of a Ukrainian attack on a Caspian Pipeline Consortium (CPC) oil station. However, the momentum faded on Friday, bringing Brent crude below $75 per barrel.
Brent crude, which started the week at $74.40, gained slightly on Monday after reports of the attack, closing at $75.06. Meanwhile, West Texas Intermediate (WTI) rose 1% to $71.28.
Expectations of economic recovery in China, the world’s largest oil importer, also contributed to price gains. Comments from Chinese President Xi Jinping in support of the private sector pushed Brent crude up to $75.45, while WTI climbed to $71.74.
The EU’s approval of new sanctions targeting Russia’s shadow fleet further lifted prices, with Brent reaching $76.46 before settling at $75.81. WTI ended the day at $72.16. However, the upward trend was cut short when U.S. Treasury Secretary Scott Bessent hinted at possible easing of Russian sanctions, which caused prices to decline.
A phone call between Bessent and Chinese Vice Premier He Lifeng, stressing the importance of U.S.-China economic relations, further eased concerns over supply disruptions, contributing to a nearly 3% drop in Brent crude, marking its sharpest decline since October 2024.
Brent crude closed the week at $73.90, down 0.7%, continuing a five-week losing streak. WTI fell 0.5% to $70.20.
Market experts suggest that oil prices remain range-bound between $74 and $76 per barrel due to ongoing geopolitical uncertainty. Analysts caution that future price movements will depend on new sanctions, Russia-U.S. peace talks, and OPEC+ production policies.
