“Oil Prices Up 1% on Supply Risk & US-China Trade Talks”

 

By MD Rubel Islam :Global Finance News

“Updated: October 22, 2025 | 12:12 PM GMT+6”

“Oil prices rise over 1% amid global supply risks and US-China trade talks; HSBC appoints Lindberg as UK Head.”

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• Oil prices rose over 1% due to supply risk and trade optimism.

• Brent crude: $62.26 | WTI: $58.16

• Trump-Putin summit cancellation and U.S.-Venezuela tensions boosted risk perception.

• U.S. Department of Energy plans to refill Strategic Petroleum Reserve (SPR).

• U.S.-China trade talks remain the key driver for market stability.

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Oil Prices Rise Over 1% Amid Supply Risk & US-China Trade Talks

Updated: October 22, 2025 | By: GlobalFinance News

Oil prices have surged more than 1% this week, driven by growing oil supply risk, renewed optimism in U.S.-China trade talks, and fresh moves by Washington to refill the Strategic Petroleum Reserve (SPR). The market rebound follows a five-month low hit earlier this month, signaling a potential turning point in the global energy market.

Brent Crude and WTI Show Strong Recovery

Both major benchmarks — Brent crude and West Texas Intermediate (WTI) — extended gains on Wednesday.

Brent crude rose by 1.5% to $62.26 per barrel

WTI jumped 1.6% to $58.16 per barrel

Analysts note that the recovery was largely fueled by renewed energy market confidence after a volatile trading week dominated by geopolitical uncertainty.

> “Despite weak demand, ongoing supply disruptions in regions like Russia, Venezuela, and the Middle East continue to keep prices above the $60 mark,” said Mukesh Sahdev, CEO of XAnalysts.

Geopolitical Factors Driving Oil Price Volatility

Oil markets remain highly sensitive to geopolitical tensions and trade developments. Several key factors are now influencing global oil prices:

Trump-Putin Summit on Hold

The sudden cancellation of the Trump-Putin summit added uncertainty to U.S.-Russia relations, with analysts warning it could affect sanctions and future oil supply stability.

U.S.-Venezuela Tensions Intensify

Tensions between the U.S. and Venezuela — a key Venezuelan oil producer — have escalated sharply. Recent U.S. strikes in Caribbean waters targeting Venezuelan vessels drew international criticism and raised concerns over potential supply disruption.

Independent United Nations experts have called these actions “extrajudicial executions,” adding further complexity to Washington’s already tense relationship with Caracas.

U.S.-China Trade Talks Offer Hope to Markets

Amid the global uncertainty, U.S.-China trade talks are providing a ray of optimism. Delegates from both nations are meeting this week in Malaysia, ahead of a planned summit between President Donald Trump and President Xi Jinping in South Korea.

Trump stated,

> “I expect a fair trade deal with China very soon. President Xi and I have a good relationship, and I believe we’ll reach common ground.”

Analysts from ING commodities say these comments provided “short-term support” for oil prices, as traders bet on improved trade flows and energy demand between the world’s two largest economies.

Strategic Petroleum Reserve (SPR) Refill Adds Support

The U.S. Department of Energy has announced plans to purchase 1 million barrels of crude oil for its Strategic Petroleum Reserve (SPR). This move is seen as a bid to take advantage of relatively low oil prices and bolster the nation’s emergency stockpile.

According to ANZ research analysts,

> “The SPR refill adds a layer of demand that stabilizes prices and reassures the market amid uncertain global supply chains.”

Regional Overview — From Singapore to Texas

The global energy market remains interconnected, with key regions influencing both production and sentiment.

Singapore

In Singapore, where much of Asia’s oil trading is centered, investors are closely watching both Brent and WTI trends, especially with sanctions-related supply risks from Russia.

Permian Basin, Midland Texas

In the Permian Basin oil field near Midland, Texas, U.S. crude production remains robust. However, oversupply and storage challenges have kept local prices volatile.

Russia & Venezuela

Both countries face ongoing sanctions-related risks, limiting their ability to maintain consistent export levels. Western pressure has particularly affected Asian buyers of Russian oil.

Market Sentiment and Future Outlook

HSBC Picks Lindberg as UK Head

Global banking giant HSBC has announced that it has picked David Lindberg, a former NatWest executive, as its new UK Head, signaling the bank’s focus on strengthening leadership amid shifting market trends. Analysts say this move reflects growing competition and strategic alignment among major financial institutions as global oil and currency markets continue to fluctuate.

Despite near-term optimism, the oil supply glut remains a concern. Demand recovery has been slower than expected, and U.S. crude stocks data from the American Petroleum Institute (API) still show modest declines.

However, experts believe the combination of:

• Ongoing U.S.-China trade progress

• Temporary supply disruptions

• Strategic stockpiling through the SPR

...could help oil prices stabilize above $60 per barrel in the coming weeks.

Expert Insights — What’s Next for the Energy Market?

According to energy market consultancy XAnalysts, the next quarter will be crucial for oil price direction. If trade deals progress and sanctions-related risks ease, global demand may rise again — particularly across Asia and Europe.

> “The current market is balancing between oversupply and geopolitics. The SPR purchase gives temporary relief, but sustained growth will depend on trade stability,” said Mukesh Sahdev.

Final Thoughts — Oil’s Balancing Act

As global tensions fluctuate, oil prices are likely to remain volatile. The energy market is juggling conflicting forces — supply pressure from Russia and Venezuela, and optimism from U.S.-China trade talks.

Investors and traders worldwide are keeping a close eye on upcomi

ng diplomatic meetings in Malaysia and South Korea, which could reshape the global energy industry in the final months of 2025.

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