Crude oil prices surged this week, driven by significant trade diplomacy breakthroughs, tightening supply signals, and mounting geopolitical risks.
However, a late-session pullback on Thursday trimmed gains as traders braced for potential fallout from U.S. trade actions. As of Thursday’s close, Light Crude Oil futures settled at $69.26 per barrel, up $4.10 or 6.29% on the week.
U.S.-EU and China Trade Progress Fuels Early Week Rally
The rally kicked off Monday on the back of a major U.S.-EU trade agreement that lifted the threat of sweeping tariffs and shifted market focus to long-term energy cooperation. The European Union pledged to purchase $750 billion worth of U.S. energy products over three years, a move widely seen as supportive for transatlantic energy demand. The deal also included $600 billion in pledged EU investment in the U.S., further supporting confidence in global trade stability.
Optimism extended into Tuesday as the U.S. and China resumed trade negotiations in Stockholm. The talks signaled potential resolution of long-standing trade frictions between the world’s two largest economies—an outcome that could bolster global trade flows and support oil demand across logistics, shipping, and industrial activity.
Sanction Risks on Russia, Iran, and Venezuela Drive Supply Premiums
Midweek attention turned to escalating geopolitical risks that sharply lifted the market’s risk premium. Former President Donald Trump issued a 10–12 day deadline.
