Saturday, 23 August 2025
Oil prices dropped below USD 70 per barrel in early August after briefly touching a five-week high at the end of July, according to the Oil Market Monthly Report – August 2025 published by Kamco Invest. The report states that Brent crude and WTI both fell to around USD 66 per barrel as markets reacted to speculation that the United States may soften its stance toward Russia, easing fears of fresh sanctions that could disrupt supply.
Earlier strength in oil prices was attributed to expectations of tighter restrictions on Russian and Iranian exports, but the outlook shifted as negotiations signaled possible changes in U.S.–Russia relations.
The report highlights that additional downward pressure came from weaker U.S. economic data, fresh production increases announced by OPEC+, and ongoing doubts about the pace of demand recovery in China. However, renewed speculation about potential U.S. Federal Reserve interest rate cuts provided some support for crude prices.
OPEC+ has pledged further hikes in production, raising concerns of a growing supply glut. Refiners and traders are also monitoring demand signals in Asia, particularly in China, where sluggish economic momentum continues to weigh on oil consumption forecasts.
Despite near-term headwinds, Kamco Invest notes that any substantial policy shift by major central banks or unforeseen supply disruptions could quickly alter the outlook (Kamco Invest, Aug. 2025). The report concludes that oil market volatility is expected to persist in the coming months as geopolitical and economic developments continue to shape supply and demand dynamics.
Source: Kamco Invest, Aug. 2025
