FX.co ★ Oil Extends Gains

WTI crude oil futures continued their upward trajectory, reaching approximately $59.50 per barrel on Friday. This rise follows President Trump's warning of imposing secondary sanctions on nations purchasing oil from Iran. The United States has already enforced sanctions on several Chinese refineries for acquiring Iranian crude, as well as on numerous companies and vessels facilitating its transportation. Adding to the market's optimistic mood, China has expressed openness to resuming trade negotiations with the US, fostering hope for a reduction in tensions between the world's two largest oil consumers. Despite these developments, oil is set for a weekly decline exceeding 5%. This downturn is attributed to ongoing uncertainties regarding trade matters, concerns over demand following a reported contraction in US GDP, and China's most severe industrial slowdown in more than two years. Additionally, anticipated increases in supply from OPEC+ have exerted downward pressure on prices, with indications from Saudi Arabia that it can withstand lower prices and may advocate for increased output at the forthcoming meeting in May.