Oil prices have experienced a notable recovery, driven by short-covering and a rebound in equity markets. However, persistent concerns over U.S. tariffs and monetary policy continue to cast a shadow over the global economic outlook.
On April 22, 2025, Brent crude futures rose by 1.2% to $67.06 per barrel, while the U.S. West Texas Intermediate (WTI) crude contract for May increased by 1.7% to $64.14. The more actively traded WTI June contract gained 1.4% to $63.27
Analysts attribute the rebound to a correlation between oil and equity markets, with SEB analyst Bjarne Schieldrop noting that daily fluctuations in Brent crude prices have closely mirrored those in equity prices. U.S. stock index futures also rose, recovering from previous losses triggered by President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell and calls for immediate interest rate cuts.
Despite the recovery, concerns persist over economic headwinds from tariffs and U.S. monetary policy that could dampen fuel demand. Progress in U.S.-Iran nuclear talks has also eased supply concerns, contributing to the volatility in oil prices.
The oil market is navigating a complex landscape of geopolitical tensions, economic policies, and market dynamics. Investors should remain vigilant and consider these factors when making decisions in the energy sector.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
