Oil Prices Steady on Oct 28, 2025 as Markets Weigh US-China Trade Progress and OPEC Output Plans

Crude oil prices paused on Tuesday, stabilising after a recent rally that was fueled by US sanctions on Russia and renewed optimism surrounding US-China trade negotiations. However, expectations of an upcoming OPEC+ output hike kept markets cautious.

Reports indicated that the Organisation of Petroleum Exporting Countries and its allies (OPEC+) were considering another production increase, offsetting gains driven by geopolitical optimism and supply concerns.

OPEC+ Weighs Production Increase

Brent crude futures for December slipped 0.1% to $65.59 per barrel, while West Texas Intermediate futures fell 0.1% to $61.26 in Tuesday’s Asian session.

According to Bloomberg, OPEC+ is expected to discuss a third consecutive monthly output hike of roughly 137,000 barrels per day when members meet this Sunday.

The cartel’s decision reflects a broader effort to regain market share and counteract prolonged weakness in oil prices, even as demand recovery remains uneven.

Sanctions on Russia Continue to Shape Market Sentiment

Oil markets remain attentive to the fallout from Washington’s recent sanctions targeting Russia’s two largest energy firms, Lukoil and Rosneft. The restrictions have heightened uncertainty over global supply chains.

US-China Trade Progress Offers Some Relief

Meanwhile, diplomatic developments between the US and China have provided a measure of optimism for energy markets. Officials from both nations confirmed that a framework trade deal has been reached and will be finalised when Presidents Donald Trump and Xi Jinping meet in South Korea later this week.

Read More: US President Trump Wants India to Stop Buying Russian Oil, But Can It?

Conclusion

Oil prices appear to be entering a period of consolidation as markets weigh competing forces renewed US-China trade optimism on one hand, and the prospect of higher OPEC+ production on the other. While sanctions on Russia continue to pose upside risks, a coordinated supply increase could temper further price advances in the near term.

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