KUALA LUMPUR, 25 September 2025 – Oil prices edged lower in Asian trade on Thursday, retreating from the previous session’s seven-week high, as investors booked profits amid renewed uncertainty over the global supply-demand balance.
By 0350 GMT, Brent crude futures slipped 26 cents, or 0.4%, to $69.05 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 27 cents, or 0.4%, to $64.72. Both benchmarks had surged 2.5% on Wednesday, marking their highest levels since August 1, lifted by a surprise drop in U.S. crude inventories and heightened fears that Ukraine’s attacks on Russian energy facilities could disrupt global supply.
Sentiment-Driven Rally Meets Supply Concerns
“Oil looks to be hitting a ceiling, with softer (seasonal) demand and rising OPEC+ supplies into Q4. Recent gains feel more sentiment-driven than fundamental, so unless a new shock emerges, Brent is likely to consolidate with a slight downside bias,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Sachdeva added that profit-taking was evident in early trading, while the expected return of Kurdish supplies was reviving oversupply fears. On Wednesday, eight oil firms reached an agreement with Iraq’s federal and Kurdish regional governments to restart crude exports within days.
Resilience Despite Risks
Although investors remain watchful of potential disruptions to Russian supply, analysts at Haitong Securities noted that the recent resilience in prices reflects a lack of significant downward pressure from fundamentals, even as peak demand season winds down.
“As the peak demand season gradually ends, expectations of mounting oversupply pressures have yet to be reflected in prices,” Haitong wrote in a report.
Weakening U.S. Travel Demand
Adding to the caution, J.P. Morgan analysts highlighted signs of slowing U.S. fuel consumption. September data showed air passenger throughput rising just 0.2% year-on-year, a marked slowdown from the 1% growth recorded in each of the prior two months.
“Likewise, U.S. gasoline demand has started to pull back, mirroring the broader moderation in travel trends,” the report said.
Source: Reuters
