FX.co ★ Oil Posts Weekly Gain on Trade Hopes, Geopolitical Tensions

On Friday, WTI crude oil futures experienced a 1.9% increase, closing at $64.60 per barrel. This marks their first weekly ascent in three weeks, with an over 6.5% rise. The upswing stemmed from renewed optimism following the resumption of trade discussions between U.S. President Donald Trump and China's President Xi Jinping, bolstering hopes for enhanced global demand. Sentiment improved further with Canada's entry into direct trade negotiations with the U.S. Despite these gains, the oil market remains susceptible to volatility due to geopolitical tensions, such as the possibility of heightened U.S. sanctions on Venezuela and potential Israeli strikes on Iranian facilities. On the supply side, Saudi Arabia reduced its July crude prices for Asia to nearly two-month lows, a minor cut compared to expectations, following OPEC+'s agreement to increase output by 411,000 barrels per day. This move reflects efforts to balance growing demand with disciplined production levels.