WTI crude oil futures fell to $64.2 per barrel on Wednesday, retreating from the four-week high of $65.7 touched earlier in the session amid fresh signs of higher supply. Reports indicated that the OPEC+ group is considering raising their oil output at their meeting over the upcoming weekend, surprising markets that had mostly expected an unchanged level of production. Such a decision would extend the several output hikes by the cartel this year despite calls of waning fuel demand, as major producers and exporters prioritize regaining their market share and increasing their budget revenues through energy sales. In the meantime, data showed that seaborn exports of Russian oil to China rebounded sharply as the world's top importer assumed tankers after a demand pullback from India, largely owed to aggressive tariffs from the United states. The outlook for fuel demand was also dim in the US following a weaker than expected ISM Manufacturing PMI.
Gold prices traded around $3,530 per ounce on Wednesday, hovering at record highs, supported by expectations of US monetary easing and a flight to safety amid broader political and economic risks. Investors anticipate that the Federal Reserve may lower rates this month after Chair Jerome Powell cautiously signaled the possibility of a cut. Attention now turns to Friday’s key US jobs report for further clues on the likelihood of easing in September. Meanwhile, President Trump’s disputes with the Fed—including actions against Governor Lisa Cook—have raised concerns about the central bank’s independence. Gold has also benefited from tariff-related uncertainty, as Trump said his administration would seek an expedited Supreme Court ruling to overturn a federal court decision declaring many of his tariffs illegal. Diversification away from the US dollar, along with broader budget concerns that have pressured equity and bond markets, has also reinforced demand for safe assets like gold.
