Oil rises more than 1% on supply risks and US-China talks

Oil prices rose for a second consecutive day on Wednesday (October 22, 2025), rising more than 1%, supported by supply risks related to sanctions and hopes for a US-China trade deal. Investors also digested news that the US was seeking to buy oil for its strategic reserves.

Brent crude futures rose 94 cents, or 1.5%, to $62.26 a barrel, while US West Texas Intermediate (WTI) crude futures rose 92 cents, or 1.6%, to $58.16.

Oil rebounded from a five-month low hit on Monday as producers ramped up output while trade tensions dampened demand.

Supply risks stemmed from overnight news of the postponement of a summit between US President Donald Trump and Russian President Vladimir Putin, as well as concerns about unrest fueled by Western pressure on Asian buyers of Russian oil.

Investors also monitored tensions between the US and Venezuela, a major oil producer.

A group of independent United Nations experts said on Tuesday that US strikes against Venezuela in international waters constitute a dangerous escalation and amount to "extrajudicial executions."

In recent months, US President Donald Trump has ordered strikes on at least six ships in the Caribbean suspected of transporting drugs, as part of a campaign against the threat of "narcoterrorism" emanating from Venezuela.

Investors are also closely monitoring the progress of trade talks between the United States and China, with officials from both countries scheduled to meet this week in Malaysia.

Trump said on Monday that he expects to reach a fair trade agreement with Chinese President Xi Jinping, whom he plans to meet in South Korea next week.

Oil prices fell for a second day on Tuesday amid concerns about oversupply and the risks to demand stemming from US-China tensions.

Market sources, citing figures from the American Petroleum Institute on Tuesday, said US crude, gasoline, and distillate inventories fell last week.

The U.S. Department of Energy announced Tuesday that it aims to purchase 1 million barrels of crude oil for delivery to the Strategic Petroleum Reserve, as it seeks to take advantage of relatively low oil prices to help replenish its stockpile.