FX.co ★ Oil Holds Gains

WTI crude oil futures were steady at approximately $67.6 per barrel on Friday, maintaining a 1.7% gain from the previous day. This stability was underpinned by expectations of tighter supply coupled with a more favorable demand outlook. Production in Iraq's Kurdistan region was reduced by up to 150,000 barrels per day due to drone attacks, while ongoing regional instability and Israeli military actions in Syria contributed to market unease. In the broader economic context, robust US economic indicators alleviated worries about growth despite persistent trade tensions. Additionally, China reported better-than-expected GDP figures, enhancing demand projections from major consumers. Supporting this perspective, US crude inventories saw a significant decrease last week, aligning with the International Energy Agency’s (IEA) findings that rising output has not resulted in increased stockpiles, signifying strong demand. Nevertheless, oil is on track to record a weekly decline of over 1%, marking the first in three weeks, after President Trump set a 50-day deadline for Russia to agree to a ceasefire, reducing concerns that new sanctions might impede global crude supply.