Oil prices have fallen amid renewed trade tensions between the United States and China. Financial markets, however, gained momentum thanks to strong corporate earnings and expectations of further interest rate cuts by the U.S. Federal Reserve (FED). Crude oil has depreciated by more than 4% over the past seven days, mainly reflecting the resurgence of trade frictions between the world’s two largest economies and top oil consumers.
Recently, both countries began imposing additional port fees on shipping companies, heightening uncertainty about the outlook for global economic activity.
In addition, a report by the International Energy Agency (IEA) indicated that the global oil market could face a surplus of up to 4 million barrels per day next year — a nearly 20% increase compared to the surplus projected in the previous forecast.
Investors are also monitoring the potential for increased supply following the first phase of the ceasefire agreement in Gaza, formalized this week, which could ease tensions in the Middle East and facilitate the passage of oil tankers through the Suez Canal and the Red Sea.
The price of Brent crude, the benchmark for Angolan exports, fell 4.49% to USD 62.28 per barrel, while WTI declined 4.63% to USD 58.65 per barrel.
On the stock markets, in the U.S., the S&P 500 benchmark index posted a weekly gain of 0.14%, reaching 6,654.72 points. In Europe, the Stoxx 600 advanced 0.82% to 567.65 points, as investors reacted positively to remarks by the Federal Reserve Chair, whose comments suggested that the FED may implement additional interest rate cuts later this year. The market is currently expecting at least two more rate cuts of 25 basis points each, in October and December.
The start of the earnings season has also had a positive influence on equity markets, with several publicly listed companies in Europe and the United States reporting profits above expectations. Moreover, the prospect of easing political tensions in France contributed to the strong performance of European stocks.
In the metals market, the price of gold recorded a weekly increase of 5.7% as of Wednesday, reaching USD 4,207.02 per ounce, near an all-time high — reflecting ongoing uncertainty surrounding the U.S.-China trade dispute.
Finally, in the foreign exchange market, the Bloomberg Dollar Spot Index rose 0.23%, while the EUR/USD pair depreciated about 0.20% to USD 1.16 per euro, reflecting euro weakness as the French Prime Minister was reconfirmed in office.
Source: Expansão
