Stability in Oil Prices Following Three Days of Rise

SadaNews - Oil prices stabilized after a rise that lasted three days, as investors awaited comments from U.S. President Donald Trump regarding Russia, and the potential for him to take additional steps to punish Moscow in light of the war in Ukraine.

Trump had raised doubts in a social media post on Wednesday about an alleged Russian incursion into Polish airspace, which temporarily pushed oil futures higher as some investors covered their short positions. Brent crude was trading above $67 a barrel on Thursday morning after closing up 1.7% in the previous session, while West Texas Intermediate crude stabilized around $64.

The post followed statements Trump made to European Union officials, where he expressed readiness to impose new tariffs on both India and China, major buyers of Russian oil, to force Moscow to negotiate with Ukraine – provided that EU countries follow suit. So far, U.S. actions have been limited to New Delhi only.

In turn, the European Union confirmed its intention to significantly tighten sanctions imposed on Russia and its supporters in order to end the war, describing the Russian violation of Polish airspace as "an aggressive and reckless act" representing a "serious escalation".

Mukesh Sahu, head of commodity markets at Rystad Energy, said: "Western positions toward Russia are becoming more rigid, and we could be surprised by unexpected actions. The market should be prepared for more volatility."

Despite the recent rise, oil prices remain low since the beginning of the year, amid forecasts of a supply glut by the end of 2025 putting pressure on prices. U.S. crude inventories rose by 3.9 million barrels last week, but they still remain below the five-year average, according to government data.

Citi Group views the market as "trapped in a struggle between increasingly negative fundamentals and rising geopolitical risks," reaffirming its expectations for Brent crude to fall to low levels in the $60 per barrel range by the end of the year, with this trend continuing into 2026."