FX.co ★ Oil Poised for Strong Weekly Gain

WTI crude futures climbed above $65 per barrel on Friday, reaching near a three-week high and poised for a weekly increase of over 4%, marking the most robust rise since early June. This upward trend is primarily driven by supply concerns as pressure mounts on the purchase of Russian oil. US President Donald Trump has urged Turkish President Recep Tayyip Erdogan to cease oil imports from Russia, aiming to intensify constraints on Moscow amid the ongoing conflict in Ukraine. Earlier in the week, prices were bolstered by rising geopolitical risks, particularly as Ukraine escalated drone attacks on Russian energy facilities. This spurred fuel shortages and heightened the risk of export restrictions. However, the resurgence of Kurdish oil exports has alleviated some of the supply concerns. Additionally, tempered expectations for US interest rate cuts—which could have stimulated economic growth and, consequently, increased oil demand—combined with renewed global trade tensions, contribute further to the potential for downward pressure on oil prices.