By Sama Marwan,
Global oil prices saw a modest rebound on Friday, May 16, 2025, following a sharp dip the previous day. The gains were fueled by renewed optimism over U.S.-China trade relations and mixed signals from global supply forecasts.
Latest Oil Prices:
Brent Crude: Up by $0.17 (0.26%) to $64.70 per barrel
West Texas Intermediate (WTI): Up by $0.18 (0.29%) to $61.80 per barrel
What’s Driving the Market?
1. Trade Tensions Eased: The United States and China reached a 90-day agreement to ease trade tensions, which included major tariff reductions. This development reassured investors about global economic growth and future oil demand.
2. Previous Day’s Dip: Prices had fallen by more than 2% the day before after U.S. President Donald Trump announced that a nuclear deal with Iran was close—a move that could bring Iranian oil back into the global market.
3. Rising Global Supply: The International Energy Agency (IEA) raised its forecast for global oil supply in 2025 by 1.6 million barrels/day, mainly due to OPEC+ members, especially Saudi Arabia, easing production cuts.
Market Outlook:
Despite the current bounce, the market remains highly sensitive to geopolitical shifts and supply dynamics. Analysts caution that while trade optimism is a bullish factor, the return of Iranian oil and increased OPEC+ output may cap future gains.
Bottom Line:
Oil prices are navigating a tightrope between economic optimism and oversupply fears. As global powers shuffle their policies, energy markets remain volatile—with Brent crude holding at $64.70 for now, but with plenty of room for movement ahead.
