WTI recovers to $ 65, still down -1% on rising trade war fears

Stalls overnight declines near $ 64.70, but bearish pressure persists.
Rising output, escalating US-Sino trade spat and firmer USD weigh.
Focus shifts to the API crude stockpiles data ahead of Friday’s OPEC meeting.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) failed to sustain the rally beyond the $ 65 mark and extended its retreat into Europe, before finding fresh buyers near $ 64.70 region to re-attempt the $ 65 supply area.

The renewed sell-off in the black gold was mainly triggered by escalating trade tensions between the US and China after the US President Trump noted he seeks additional $ 200 billion worth of trade tariffs on the Chinese goods. The renewed fears of a potential trade war spooked markets and killed the demand for the higher-yielding assets such as oil.

Also, mounting concerns over a potential output boost by the OPEC and its allies later this week combined with broad-based US dollar strength continues to add weight on the barrel of WTI.

However, the disagreements amongst the OPEC producers on the expected output hike appear to lend some support to the prices. Reuters quoted two OPEC sources, as saying that Iran, Algeria and Venezuela oppose immediate oil output rise.

Attention now turns towards the US weekly crude inventories data due to be published by the American Petroleum Institute (API) later on Tuesday for fresh trading impetus. Meanwhile, the June 22^nd meeting between the OPEC and its allies in Vienna will offer fresh direction on the prices.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.