FX.co ★ Oil Up for Second Week

WTI crude oil futures increased by 1.4%, closing at $62.5 per barrel on Friday, and marking a weekly rise of over 2% for the second consecutive time. This upward trend was encouraged by improved sentiment due to easing trade tensions between the US and China, two of the largest oil consumers globally. The announcement of a 90-day tariff pause between these nations alleviated concerns about diminishing demand. At the same time, doubts persisted surrounding a potential US-Iran nuclear agreement, which could introduce an additional 400,000 barrels per day to global supply. In spite of this possible supply augmentation, optimism for US interest rate reductions remained, potentially enhancing economic activity and oil demand. Nonetheless, there was still cautiousness given the increase in US crude inventories and the International Energy Agency's (IEA) forecast of a supply surplus by 2025, attributed to higher output from OPEC and its allies. Analysts have also revised long-term oil price projections downward, citing ongoing uncertainty in trade policies.