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WTI Oil consolidates around $65.00 as the Middle East ceasefire holds

- WTI Oil remains flat near $65 after its worst week in years. - The ceasefire in the Middle East has triggered a $12 sell-off on WTI prices. - The weak global economic outlook, coupled with expectations of supply hikes, is weighing on Crude. Oil prices are trading within a narrow range around $65.00 on Friday, consolidating losses, on track to their largest weekly sell-off in years, following a nearly $12 depreciation after Trump announced a truce in the Israel-Iran war. A fragile ceasefire is holding so far, and investors have shifted their focus to the uncertain global economic outlook. The lack of progress on trade deals between the US and its main partners, weak US data revealing that the world’s major economy is losing momentum, and the uninspiring figures from China and the EU are pointing to a grim outlook for global Crude demand in the coming months. Weak demand outlook and higher output threaten with an Oil glut Beyond that, OPEC+ countries are meeting in early June and are widely expected to approve another supply hike, which might increase concerns of an oversupply and add negative pressure on prices. In this context, the larger.than expected decline in US Crude stocks reported by the US Energy Information Administration on the week of June 20 has passed practically unnoticed by the market. Today, all eyes will be on the US PCE Price Index report, which is expected to show that inflationary pressures remain at moderate levels despite higher tariffs. If the final data supports the idea that the Fed might cut rates in July or September, hopes for an improving economic activity might have a moderate positive impact in Oil.

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Publication date:

2025-06-27 11:31:17 (GMT)

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