FX.co ★ Oil Rises for 2nd Session

Brent crude oil futures experienced an increase of over 1%, reaching above $65.5 per barrel on Thursday. This upward movement was primarily driven by a recent US court ruling that deemed several of President Trump's global tariffs illegal, alleviating concerns surrounding the tariffs' effects on global economic growth and oil demand. Although the Trump administration intends to appeal the decision, the ruling has enhanced market risk appetite. Additionally, oil prices received further support due to heightened geopolitical tensions, notably in Libya where the eastern government threatened to halt production following a militia's incursion into the state oil company's headquarters, highlighting potential supply risks. Despite these gains, oil prices continue to be under pressure due to apprehensions regarding OPEC+ production increases and the broader implications of Trump's trade policies. The OPEC+ coalition is scheduled to meet on Saturday, where they might authorize additional supply increases for July. In the US, there is consideration of new sanctions on Russia, although their impact is perceived to be minimal thus far. Furthermore, US crude inventories saw a reduction of 4.2 million barrels last week, according to data from the American Petroleum Institute.