Oil Prices Fall to Three-Week Low

Oil prices dropped on Friday to their lowest settlement levels in three weeks, pressured by signs of weakening economic momentum in both the United States and China, as well as growing indications of increased supply.

However, optimism surrounding potential trade deals and policy shifts helped limit the decline.

Brent crude futures fell by 74 cents, or 1.1%, to settle at $68.44 per barrel, while U.S. West Texas Intermediate (WTI) dropped 87 cents, or 1.3%, to $65.16 per barrel.

Latest Oil Prices:

WTI Crude • 65.16 -0.87 -1.32%

Brent Crude • 68.44 -0.74 -1.07%

Murban Crude • 71.20 -1.13 -1.56%

Louisiana Light • 68.65 -1.51 -2.15%

Bonny Light • 78.62 -2.30 -2.84%

Mars US • 71.56 -1.02 -1.41%

Gasoline • 2.097 -0.007 -0.34%

Natural Gas • 3.110 +0.016 +0.52%

These closing prices mark the lowest for Brent since July 4, and for WTI since June 30. For the week, Brent declined approximately 1%, while WTI posted a 3% loss.

Economic data released on Friday painted a picture of slowing industrial activity. In the U.S., new orders for capital goods, a key indicator of business investment, unexpectedly declined in June, pointing to softening equipment spending in the second quarter. 

Meanwhile, the Chinese Ministry of Finance reported a 0.3% year-on-year decline in fiscal revenues during the first half of 2025, extending a months-long downward trend.

These developments sparked renewed concerns about global oil demand just as seasonal factors typically drive consumption higher.

On the supply side, markets are watching closely as the U.S. moves to ease restrictions on partners of Venezuela's state oil firm, potentially allowing a modest increase in exports from the heavily sanctioned OPEC member. Analysts at ING estimate Venezuelan exports could rise by over 200,000 barrels per day if the measure is enacted.

Iran, another OPEC member under sanctions, also returned to talks with European powers in what it described as “serious, candid, and detailed” discussions, a sign that further diplomatic engagement could eventually pave the way for increased Iranian crude in global markets.

Both countries remain subject to international restrictions, but any shift in their production capacity or export volumes could swell global supply, undermining prices.

Meanwhile, European Commission President Ursula von der Leyen confirmed she will meet U.S. President Donald Trump in Scotland on Sunday to discuss trade ties. EU officials expressed hope that a framework agreement could be reached, potentially boosting economic activity and long-term oil demand.

Adding to market speculation, Trump said Friday he had a “good meeting” with Federal Reserve Chair Jerome Powell, and hinted that the Fed may be open to cutting interest rates. A rate cut would reduce borrowing costs, potentially stimulating growth, and energy consumption.