Oil Prices Drop Below $70 While Natural Gas Surges on Market Volatility

Oil Prices Drop Below $70 While Natural Gas Surges on Market Volatility

Published: July 11, 2025
Category: Commodities | Energy Markets | Geopolitics

Oil Faces Pressure as Brent Falls Over 2.2%

On Thursday, oil markets faced renewed pressure, with ICE Brent crude dropping by more than 2.2%, closing below the critical $70.00 per barrel threshold. The dip comes amid broader market concerns over economic slowdown and global energy demand outlook.

However, early trading on Friday saw a modest rebound as President Donald Trump teased a "major announcement" regarding Russia set for Monday, fueling speculation of potential new sanctions on one of the world's leading oil exporters.

Natural Gas Prices Jump Amid Energy Market Shifts

In contrast, natural gas prices surged, supported by increased market volatility, potential supply concerns, and seasonal demand expectations. Analysts note that any geopolitical instability linked to Russia could tighten energy supply chains, benefiting natural gas in the short term.

Geopolitical Risk Premium Creeps Back

The possibility of further US sanctions on Russia is keeping the market on edge. Trump's remarks have raised uncertainty in global commodity circles, especially given Russia’s role as a top global crude and natural gas supplier.

“Oil’s weakness reflects market jitters and bearish fundamentals, but the looming political announcement may inject new volatility,” energy analysts at Tredu stated.

Key Takeaways:

• ICE Brent crude drops over 2.2%, closes below $70/bbl
• Natural gas prices spike on volatility and supply fears
• President Trump hints at a major Russia-related announcement
• Market watches closely for potential US sanctions on Russian energy

Related Tredu Reads:

• WTI Rises Amid Russia Sanction Speculation
• OPEC Forecast: Lower Global Oil Demand Outlook
• Gas Prices Spike Ahead of Peak Summer Demand