#oil prices

#oil prices

Pacing inside the Kremlin last weekend, as news feeds churned out minute-by-minute reports of Donald's Trump's Venezuelan coup, Vladimir Putin may have been wondering what it would mean for the price of oil. Crude oil has lubricated the Russian economy for decades far more than gas exports to Europe and so the threat of falling oil prices, prompted by US plans for control of Venezuela's rigs, will have been a source of concern.

European markets have entered the final full week of 2025 on a largely tepid tone with many easing back ahead of a shortened week that looks likely to see lower volume and lower volatility. Coming off the back of a period that has seen a raft of big-ticket, market-moving events, traders are expecting things to calm down towards year-end. Today's notable release in Europe saw UK GDP confirmed at 0.1% for the third quarter. This lays the groundwork for tomorrow's US GDP release.

Futures are trading higher on Wednesday as we reach the midpoint of the last full trading week of the year. Sellers once again took their toll on two of the major indices, while the Nasdaq squeaked out a minimal gain after being down around the noon hour. The Dow Jones Industrial Average closed down 0.62% at 48,114, while the S&P 500 was last down 0.44% at 6800. The Nasdaq pulled out a small win for the Bulls, finishing the session at 23,111, up 0.23%.

The U.S. Strategic Petroleum Reserve (SPR) was created in 1975 by the Energy Policy and Conservation Act, signed into law by President Gerald Ford. It was established in response to the 1973-1974 oil embargo, which highlighted the U.S. economy's vulnerability to oil supply disruptions. Those who were around at the time, like your author, witnessed long lines at the gas stations as the price of a gallon of gas jumped as much as 43%. In fact, the national average cost

OPEC+, the coalition of major oil producers plus Saudi Arabia and Russia , plans to increase crude output by 500,000 barrels per day (bpd) starting in November. This daily hike will continue for three months, injecting about 45 million additional barrels into the global market amid already weak demand caused by economic slowdowns in the U.S. and Asia. The move, aimed at balancing supply, risks creating an oversupply that could drive down prices.

Chinese markets continued to show resilience today, with improved PMI surveys offering a glimmer of hope for the broader economy. The latest manufacturing PMI climbed to a six-month high of 49.8, edging closer to the key 50 threshold after a six-month period of contraction. The data, coupled with renewed optimism around Chinese tech stocks, helped the Hang Seng rise 0.9%, with traders increasingly viewing Chinese AI names as a means to diversify from the Mag7 names.

Fuel prices in the UK are rising due to global instability, with Brent crude oil prices increasing from $68 to $78 per barrel in July, leading to higher retail costs.

Despite the ongoing uncertainties in the market, including geopolitical tensions and tariffs, U.S. equities are bouncing back, showing signs of resilience under current conditions.

President Trump announced a ceasefire between Israel and Iran, easing fears of an oil supply crisis and eliciting mixed reactions in stock markets.

The bombing of Iran's nuclear facilities has caught traders off guard, as financial markets showed unexpected calm due to uncertainties surrounding future retaliation and the timing of the strikes.

Expect oil to open with a sharp 7-10% gap up as risk premiums surge. But don't be fooled, this may not last...

Wael Sawan emphasized the careful management of shipping in the Middle East due to rising tensions, highlighting the significant uncertainty in the region caused by recent conflicts.