FX.co ★ Oil Rebounds on Friday

WTI crude oil futures climbed above $67 per barrel on Friday, recovering from a more than 2% decline observed the previous day. This gain reflects the market's ongoing assessment of immediate shortages against potential future oversupply. The International Energy Agency (IEA) has highlighted that current demand is bolstered by summer travel and increased power generation. However, they have also issued a cautionary note about a potential surplus, as they have increased their supply growth forecast while revising down demand projections. The possibility of a substantial rise in production by OPEC+ could exacerbate the risk of oversupply, although prices are currently stable. Indicative of robust short-term demand, Saudi Arabia is set to export approximately 51 million barrels to China in August, marking the highest monthly volume in over two years. At the same time, OPEC has adjusted its long-term demand outlook downward, reflecting slower economic growth in China. Additionally, crude prices are benefiting from geopolitical factors, as President Trump has hinted at a "major" announcement concerning Russia, leading to speculation about potential new sanctions.