7/12/2025–|Last update: 13:19 (Mecca time)
Crude oil prices rose about 3% at the end of the week’s trading yesterday, Friday, with investors evaluating weaker expectations for the current year issued by the International Energy Agency, with a focus on US customs duties and the possibility of imposing more sanctions on Russia.
Brent crude futures increased $ 1.72, 2.5% to $ 70.36 a barrel upon settlement. West Texas Intermediate crude rose $ 1.88, or 2.8% to $ 68.45 a barrel.
Brent crude increased by 3% during the week, while West Texas Intermediate crude achieved weekly gains by about 2.2%.
The supplies are limited
The International Energy Agency said on Friday that the supplies in the global oil market may be less than it appears, while increasing refineries and the frequency of refining activity to meet the demand for travel and electricity in the summer.
Brent contracts were traded September, with a $ 1.20 bonus of October futures.
“The market started realizing that the supplies are limited,” said Phil Flynn, the chief analyst of the Price Futures Group.
Baker Hughes Energy Services said that this week, US Energy Companies reduced the number of oil and natural gas excavations operating for the 11th consecutive week. It was the last time that this happened in July 2020, when Corona’s pandemic reduced the demand for fuel.
Despite the short -term market, the International Energy Agency has strengthened its expectations for the growth of the supply this year, while its expectations were reduced for demand growth, which means a surplus in the market.
“OPEC Plus will increase the pumping of oil quickly and significantly. There is a risk of a major surplus in the supply. However, oil prices are still supported in the short term,” Kumrets Bank analysts said in a note.
In an indication that prices are in short term support, Russian Deputy Prime Minister Alexander Novak said today that Moscow will compensate for the excess of its share in OPEC Plus this year in August and September.
Another indicators on the strong demand for oil are the possibility of Saudi Arabia to ship about 51 million barrels of crude oil in August to China, the largest shipment of its kind in more than two years.
But in the longest term, OPEC reduced its expectations for global oil demand from 2026 to 2029 due to the slowdown of Chinese demand, according to the organization in its 2025 global oil -forecast report that was published last Thursday.
The Saudi Ministry of Energy said today that the Kingdom is completely committed to the aim of voluntary production of the OPEC Plus alliance.
