FX.co ★ WTI Crude Posts Steep Weekly Drop Despite Friday Rebound

WTI crude oil futures experienced a modest increase of 0.4%, closing at $65.5 per barrel on Friday. However, they recorded their most significant weekly decline in years, as geopolitical risk premiums diminished. The market previously surged past $80 amid tensions from the Iran-Israel conflict but retreated after President Trump declared a ceasefire, calming concerns about potential disruptions in the region's oil supply. Despite this, Trump's fluctuating stance on applying pressure to Iran's oil sector has been noted. He acknowledged that U.S. sanctions haven't significantly curtailed China's oil purchases from Iran. Consequently, WTI crude experienced an 11% decrease over the week, marking the sharpest decline since March 2023. The market is now shifting its focus back to fundamentals, such as forthcoming OPEC+ decisions and indicators of robust summer demand. Inventory reports highlighting substantial reductions in distillate stocks and increased refinery activity have also lent support to prices. Meanwhile, China's imports of Iranian crude reached a record high in June, further impacting global supply dynamics.