Oil Prices Crash in 2025: Biggest Weekly Drop Amid Tariffs & Oversupply

By Shubhendra Anand , 07 July, 2025

Oil prices stay on track as United States (U.S.) sanctions on Canada and Mexico keep diverting the market and stable supply levels support a significant weekly decline in 2025. Reuters said this is the biggest weekly decline since October, highlighting investors growing concerns. As of the most recent trading session, Brent oil was valued at USD 69.48 a barrel; West Texas Intermediate (WTI) sold for USD 66.33 per barrel. Trade restrictions still influence Canadian oil exports, hence the condition of the oil market in 2025 is still unknown even if President Trump temporarily halted the 25 percent tariff on Canada and Mexico.

Experts in the industry warn that investors are reacting aggressively to trade policy in 2025 as financial markets exhibit increased volatility. Expert on energy Vandana Hari told Reuters that international markets are in "full panic mode," meaning that oil continues close to four-month lows and would be prone to further declines. Lack of long-term clarity on tariffs and exemptions has made traders cautious, which affects the crude oil price fluctuations. Since long-standing global economic concerns surround 2025, even little adjustments in tariff policies cannot help to shift the tone of the market.

Complicating the opposite point of view, OPEC+ has said plans to loosen production restrictions at its early April 2025 summit. Although the daily difference is only slightly under 200,000 barrels, traders nevertheless exercise tremendous care about even minor changes in global supply. The energy market of 2025 is becoming more sensitive to output levels as OPEC+ adjusts its strategy in response to demand patterns. The cautious approach suggests that any sign of excess would cause oil prices to drastically drop in the next weeks.

As the U.S. Energy Information Agency (EIA) saw a weekly increase in oil supplies of 3.6 million barrels, prices were under further pressure. Rising crude oil reserves lead to a negative overall market attitude in 2025 even if gasoline and middle distillate supply drop. Future prices in 2026 linger around USD 63 per barrel, so ING experts warned that declining oil prices might negatively impact American manufacturing growth. This reduces incentives for future drilling as the Dallas Fed Energy Survey shows shale producers require at least USD 64 a barrel to justify further expansion. Given continuous fluctuations in oil prices until 2025, the industry might have to cut drilling efforts.

As the world negotiates trade tensions, alters OPEC+ policy, and fluctuates inventories, 2025 looks to be a challenging year for crude prices. Whether supply and demand dynamics can stabilize or whether further price cuts are coming will depend   on the next several weeks.

                                 Oil Prices Crash in 2025