FX.co ★ Oil Rebounds Amid Geopolitical Tensions, But Weekly Losses Persist

On Friday, West Texas Intermediate (WTI) crude oil futures climbed 2.4%, closing at $61.50 per barrel. This hike followed comments from U.S. Energy Secretary Chris Wright, suggesting the United States might attempt to obstruct Iran's oil exports as a strategy to pressure Tehran over its nuclear program. Despite this, apprehensions about the US-China trade tensions continue to impact demand forecasts. China has introduced a significant increase in tariffs on U.S. products to 125%, while the White House confirmed that total U.S. tariffs on Chinese imports have reached 145%. Consequently, the U.S. Energy Information Administration has reduced its global oil demand outlook, cautioning that ongoing trade disputes could reduce consumption. Meanwhile, OPEC+ unexpectedly accelerated its output expansion plans, raising concerns about potential oversupply. With both demand and supply uncertainties at play, oil prices remain precarious. For the week, WTI crude experienced a 1.26% decline, following a 10.6% fall in the previous week, marking the lowest prices since April 2021.