FX.co ★ WTI Falls to 3-Week Low

WTI crude futures fell 1.3%, concluding at $65.2 per barrel on Friday, reaching their lowest level since June 30. This downturn emerged amid concerns over weakening economic indicators from the United States and China, placing pressure on prices. Over the week, WTI experienced a 3% decline, burdened by signals of increasing global supply and a deceleration in business investment. Nevertheless, prospects of potential US trade agreements with the European Union, Japan, and other partners helped cushion the losses, as such agreements could eventually bolster global economic growth and increase oil demand. Moreover, the United States is preparing to allow Chevron and other companies to resume limited operations in Venezuela, potentially boosting crude exports by over 200,000 barrels per day and alleviating supply constraints for heavier grades. Concurrently, OPEC+ is anticipated to increase production at its meeting on Monday, with the organization aiming to recapture market share as summer demand absorbs surplus barrels. In the U.S., oil and gas rig counts continued to decline, dropping for the 12th time in 13 weeks, indicating potential softness in future domestic production.