S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- WTI meets with a fresh supply amid worries that the US-China trade war would dent fuel demand.
- A surprise OPEC+ supply increase further contributes to capping the upside for the black liquid.
- US recession fears and Fed rate cut bets undermine the USD, lending support to the commodity.
West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on Friday’s modest gains and attract fresh sellers near the $61.60 area at the start of a new week. The commodity currently trades around the $60.70-$60.65 region, down over 0.50% for the day, though it lacks follow-through selling amid mixed fundamental cues.
Investors remain worried that the rapidly escalating trade war between the US and China ֪– the world’s two largest economies – would weaken global economic growth. This, in turn, could dent fuel demand, which, along with oversupply concerns, acts as headwind for Crude Oil prices. In fact, eight OPEC+ members unexpectedly decided to pull forward a planned production increase and return 411,000 bpd to the market in May.
The downside for the black liquid, however, remains cushioned on the back of sustained US Dollar (USD) selling. Traders ramped up their bets that the Federal Reserve (Fed) will resume its rate-cutting cycle soon and lower borrowing costs at least three times by the end of this year. The dovish outlook led to the recent USD slump to its lowest level since April 2022, which is seen offering support to USD-denominated commodities.
Meanwhile, US Energy Secretary Chris Wright said on Friday that the US could stop Iran’s oil exports as part of US President Donald Trump’s plan to pressure Tehran over its nuclear program. This further contributes to limiting deeper losses for Crude Oil prices and warrants some caution for bearish.
