Global oil prices held firm near their highest levels in two weeks as markets responded cautiously to shifting trade signals and improved supply expectations. Brent crude settled around $69.87 per barrel, reflecting optimism that the worst of tariff-induced shocks may be temporarily avoided. The rise in prices comes after a volatile week in which former U.S. President Donald Trump issued tariff notices to 14 countries, shaking investor confidence. However, with the actual implementation date pushed to August 1, traders are now betting that diplomatic maneuvering may ease the potential damage, allowing for smoother energy trade flows in the short term.
Adding to the momentum, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) surprised markets by announcing a modest boost in oil output for August. The move, intended to balance growing global demand and stabilize prices, was seen as a confidence signal from major producers. While the increase wasn’t dramatic, it reassured buyers that supply would remain responsive to demand, reducing the fear of shortages or price spikes.
At the same time, easing fears of immediate economic disruption due to trade frictions helped push investor sentiment back into positive territory. A stronger U.S. dollar initially capped gains, but broader market optimism around global growth—particularly in Asia—helped oil maintain its upward trajectory.
The stability in oil prices has been welcomed by both producers and importers, as it offers a level of predictability after weeks of turbulence. With attention now shifting to the outcome of ongoing tariff talks and demand recovery in key economies like China and India, the next few weeks could prove decisive for oil’s direction. For now, though, crude remains steady—caught in a delicate balance between geopolitical risk and cautious economic hope.