Global crude oil prices recorded modest weekly gains as resilient US economic growth and renewed hopes for a Federal Reserve rate cut outweighed concerns over new trade tariffs and slowing demand.
Brent crude settled at $67.64 per barrel on Friday, a 0.5% rise from the previous week’s $67.32. Similarly, West Texas Intermediate (WTI) advanced by 0.6% to close at $64.08 per barrel, compared to $63.66 the week before.
Prices spiked earlier in the week following Ukrainian drone strikes on Russian energy facilities, including a fire outbreak at the Kursk Nuclear Plant and disruptions at the Ust-Luga export terminal. These events reignited fears about global supply security.
Further upward momentum came after US President Donald Trump threatened additional sanctions on Russia if peace talks with Ukraine failed. However, market optimism was tempered by Washington’s decision to impose 50% tariffs on Indian imports, double the previous 25%, raising fears of weaker global trade and energy demand.
Data from the US Energy Information Administration (EIA) showed that commercial crude inventories declined by 2.4 million barrels, while gasoline stocks fell by 1.2 million barrels last week, highlighting solid consumption during the summer travel season. Still, analysts warned of possible demand weakness as the driving season winds down.
Support for oil prices came from the US economy, which expanded by 3.3% in Q2 2025, surpassing earlier estimates of 3%. Traders also grew optimistic over a potential September rate cut by the Federal Reserve, with markets pricing in an 85% chance of a 25-basis-point cut and a possible additional reduction before year-end.
