Crude oil prices climbed to one-week highs today as markets reacted to intensifying geopolitical risks and unexpectedly strong economic data.
Brent crude futures rose by 16 cents to reach $67.00 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 14 cents to $64.10 a barrel.
The price uptick was driven largely by attention on the upcoming summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska. Markets are bracing for developments related to the conflict in Ukraine, with renewed worries about potential supply disruptions should tensions escalate. Trump’s warning of “severe consequences” if Russia hinders peace efforts has added to that uncertainty.
Adding to bullish momentum were encouraging signs from Japan’s economy. GDP growth came in stronger-than-expected at 1.0 percent year-on-year and 0.3 percent quarterly, suggesting that demand from one of the world’s largest crude importers may be picking up.
Despite these positive indicators, concerns about sustained U.S. interest rates underpinned by lingering inflation and softer labor data kept a lid on further gains. High-rate expectations continue to temper demand outlooks for oil, as borrowing costs remain elevated.
Meanwhile, the International Energy Agency (IEA) raised its global oil supply forecasts for 2025, signaling an expected glut in the market.
According to the agency, supply is projected to increase by 2.5 million barrels per day this year and 1.9 million next year, outpacing demand and potentially weighing on prices over time.
Written By Ian Maleve
