On October 29, international oil prices rose slightly, primarily driven by a significant decline in U.S. crude oil inventories and optimistic market sentiment toward trade negotiations. By the close of trading that day, December-delivered light crude oil futures on the New York Mercantile Exchange gained 33 cents to settle at $60.48 per barrel, marking a 0.55% increase. Meanwhile, December-delivered Brent crude oil futures in London rose 52 cents to close at $64.92 per barrel, a 0.81% gain.  According to data from the U.S. Energy Information Administration, as of the week ending October 24, U.S. commercial crude oil inventories stood at 415.966 million barrels, down 6.858 million barrels from the previous week—a decline far exceeding expectations. This suggests tighter market supply, which supported oil prices. Additionally, news of upcoming U.S.-China leader-level talks further boosted market optimism and contributed to the price rally.  However, the rise in oil prices was also constrained by certain factors, such as OPEC+ considering a modest 137,000 barrels per day increase in December production, persistent supply pressure, and narrowing global refining margins. These factors may influence the subsequent trajectory of oil prices.

Author of this news: Ding Shuhan

Date: May 30th, 2025