Oil prices steady amid 2025 supply challenges and Trump policy uncertainty

Oil prices remained stable as traders focused on the challenges looming in 2025, ranging from an expected supply glut to uncertainty surrounding the policies of Donald Trump’s incoming administration, according to Bloomberg.

West Texas Intermediate (WTI) crude hovered above $70 per barrel during light trading, following a 1.6% gain last week, while Brent crude settled near $74 per barrel.

Analysts broadly anticipate that the market will face oversupply next year, posing a significant challenge for OPEC+ in its efforts to reintroduce production without further disrupting the delicate balance of supply and demand.

Crude prices are on track for an annual decline, with trading confined to a narrow range since mid-October.

According to Bloomberg, the market is grappling with conflicting signals, including ongoing geopolitical tensions in the Middle East that could push prices higher, and persistent concerns over Chinese demand—the largest oil importer globally—that continue to weigh on prices.

Adding to the uncertainty, Trump’s actions after assuming office next month are expected to keep markets jittery. He has already threatened to impose tariffs on Canada and Mexico, both major oil producers, while his nominee for National Security Advisor, Mike Waltz, has vowed to pursue "maximum pressure" on Iran.