Silver to $39.50: Up 9.4% Past 30 Days
Oil markets rebounded this week after two straight weeks of losses, thanks to renewed trade discussions between the U.S. and China—the world’s two largest economies. A positive phone call between Presidents Trump and Xi reignited hopes for a potential trade deal, driving optimism about future oil demand. Brent crude rose 2.2% for the week, while WTI surged 4.1%. Canada’s re-engagement in trade talks with the U.S. added to the upbeat sentiment. These developments suggest a more stable economic outlook, which may influence commodity investors and global growth forecasts.
The oil price rebound remains volatile as markets react to ongoing tariff negotiations and new data showing the global impact of U.S. trade policies. Uncertainty from levies is weighing on economic sentiment worldwide.
Analysts at BMI, a Fitch affiliate, noted on Friday that “the potential for increased U.S. sanctions on Venezuela and the threat of an Israeli strike on Iranian infrastructure pose upside risks for prices.” However, they cautioned that weakening oil demand and rising output from both OPEC+ and non-OPEC producers could add downward pressure in the coming months.
Meanwhile, top oil exporter Saudi Arabia reduced its July crude prices for Asia to nearly two-month lows. Although the price cut was smaller than analysts anticipated, it followed OPEC+’s decision to boost production by 411,000 barrels per day. The move aligns with Saudi Arabia’s ongoing strategy to reclaim market share and enforce output discipline among OPEC+ members, including Russia. These actions come as the oil price rebound continues to face competing pressures from supply increases and shifting global demand.
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