FX.co ★ Crude Oil Gains

WTI crude oil futures edged closer to $60 per barrel on Friday, partially recovering from the previous session's losses as markets evaluated the prospects for the global oil market. According to Saudi Aramco's CEO, concerns about an international oil surplus are unfounded, thanks to robust demand from emerging markets, particularly in China and the US, where last year's consumption hit record levels and is expected to continue increasing through 2026. This perspective follows the International Energy Agency's (IEA) assertion that worldwide oil supply is poised to outstrip demand this year, even after they slightly adjusted their demand growth forecast upwards. Additionally, a weaker dollar enhanced the attractiveness of commodities priced in dollars, offering further support to oil prices. Nevertheless, the gains were tempered by persistent worries over rising supply, potential ceasefire developments in Ukraine, and a reduced risk of aggressive US actions toward Iran. Throughout the week, oil prices appear set for a modest increase.