Written by The Banking Post
July 25, 2025 – Oil prices advanced on Friday as renewed optimism over global trade negotiations boosted investor sentiment and strengthened the outlook for energy demand, offsetting concerns about a possible uptick in supply from Venezuela.
Brent crude futures climbed 29 cents, or 0.42%, to $69.47 per barrel by 03:10 GMT, marking a one-week high. U.S. West Texas Intermediate (WTI) crude also gained 29 cents, or 0.44%, reaching $66.32 per barrel, according to Reuters data.
Market confidence was buoyed by signs of progress in trade negotiations between the United States and key partners. Washington announced a trade agreement with Japan earlier this week, while two EU diplomats indicated that the European Union was advancing toward a similar deal. The proposed arrangement may include a baseline 15% U.S. tariff on EU imports with the possibility of exemptions.
“Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply,” analysts at ING said in a client note.
The gains in oil prices came despite news that the U.S. government is preparing to ease certain sanctions on Venezuela. Sources said partners of Venezuela’s state-run oil company, PDVSA — beginning with Chevron — may soon be allowed to resume limited operations in the country. Such a move could raise Venezuelan oil exports by over 200,000 barrels per day, helping to alleviate tightness in the heavy crude market, ING added.
For the week, Brent is on track for a 0.4% gain, while WTI is down 1.4%. Both benchmarks rose approximately 1.0% on Thursday, supported in part by reports of reduced Russian gasoline exports.
Further bolstering prices were significant drawdowns in U.S. crude inventories. Data from the U.S. Energy Information Administration (EIA) showed that crude stocks fell by 3.2 million barrels last week to 419 million barrels, surpassing analysts’ expectations for a 1.6 million barrel decline.
Technical indicators also point to potential upside. “I am encouraged by the way crude oil held and bounced away from the $65/64 support band this week, which keeps hopes intact of a rebound back towards $70,” said Tony Sycamore, market analyst at IG.
Looking ahead, market participants will closely monitor upcoming economic data from major economies, including factory activity in China and U.S. figures on inflation, employment, and inventories, which could influence demand projections and price direction.
