Oil Prices Diverge at the End of Thursday's Trading Amid Mixed Economic Data
Thursday's trading on September 25 ended with a mixed performance for oil prices, with U.S. crude settling at $64.98 per barrel after a slight decline, while Brent crude finished the session with a slight increase to $69.42 per barrel.
This divergence followed a strong rally in both crude types on Wednesday, which saw a 2.5% increase, reaching their highest levels since August, driven by two main factors: an unexpected decline in U.S. inventories and concerns over supply disruptions due to attacks on Russian energy facilities.
The market was characterized by a sense of anticipation during the session as new data emerged that raised concerns among traders. Iraq announced an agreement to deliver Kurdish oil to the federal government in preparation for export, which threatens to increase supply.
In this regard, Priyanka Sachdeva, the chief market analyst at Philip Nova, commented: "The return of Kurdish supplies raises concerns about oversupply, putting pressure on prices that are hovering near their highest level in seven weeks."
Additionally, the decline in U.S. stocks for two consecutive days increased pressure on prices, as noted by Giovanni Staunovo, a commodities analyst at UBS, who remarked: "Our market is generally risk-free."
In contrast to these pressing factors, supportive elements emerged with Russia announcing new restrictive measures on oil product exports. Russian Deputy Prime Minister Alexander Novak stated that the country would impose a partial ban on diesel exports and extend the gasoline ban until the end of 2025, following drone attacks on Russian refineries.
Separately, U.S. economic growth data showed unexpected strength, with GDP recording a growth rate of 3.8% during the second quarter of 2025. This is likely to increase the Federal Reserve's caution regarding interest rate cut plans in the upcoming period.
Phil Flynn, the chief analyst at Price Futures Group, described the market's reaction to this data by saying: "The initial reaction to this was a wave of intense selling."
