Brent Crude futures settle at $67.44/bbl, up $1.18, 1.78%

Brent Crude futures settle at $67.44/bbl, up $1.18, 1.78%

Brent crude oil futures settled at $67.44 per barrel on Monday, April 23, 2025, marking a 1.78% increase from the previous close. This upward movement was driven by a combination of supply concerns and optimism surrounding U.S.-China trade negotiations.

The latest sanctions imposed by the Trump administration on Iran's oil exports, including a China-based refinery, have exacerbated supply fears. These sanctions are part of ongoing nuclear talks between the U.S. and Iran, with Iran's foreign minister stating that the country's right to enrich uranium is non-negotiable [4]. The sanctions are expected to significantly reduce Iran's oil exports, further tightening the global supply.

Supply fears were also fueled by OPEC+'s announcement that it has received updated plans for Iraq, Kazakhstan, and other members to make further output cuts. These cuts aim to compensate for the production above quotas, a move that could help alleviate the supply concerns [1].

On the demand side, prices found support in the hopes for U.S.-China trade negotiations. China expressed openness to talks, provided that certain key preconditions are met, which has boosted market optimism [1]. This optimism is reflected in the recent upward movement in Brent crude futures.

However, international oil prices have been volatile due to concerns over slowing global economic growth. The Russian Ministry of Economic Development has lowered its 2025 Brent crude oil price forecast by 17%, with the target price reduced to $68 per barrel [2]. This downward revision is in line with the recent trend of major Wall Street firms revising down their international oil price expectations [2].

Looking forward, Goldman Sachs predicts the average price of Brent crude for the remainder of 2025 to be $63 per barrel, and $58 per barrel for 2026 [2]. These forecasts reflect the firm's belief that global crude oil demand will face a historic downturn under the pressure of Trump's tariffs, leading to oversupply pressures.

In summary, Brent crude futures settled at $67.44 per barrel on Monday, April 23, 2025, driven by supply concerns and optimism surrounding U.S.-China trade talks. The market remains volatile due to concerns over slowing global economic growth and the impact of U.S. trade policies on oil demand.

References:
[1] https://www.tradingview.com/news/te_news:455504:0-brent-gains-for-2nd-day-on-supply-concerns/
[2] https://longportapp.com/en/news/236777769
[3] https://tradingeconomics.com/commodity/brent-crude-oil
[4] https://seekingalpha.com/news/4431941-oil-prices-rise-as-u-s-sanctions-chinese-importers-of-iranian-crude