Geopolitical risks and lack of progress at the Xi-Trump meeting offset bearish OPEC and IEA demand forecasts for 2026.
Oil prices climbed $7 this week, reversing earlier losses as geopolitical tensions in Iran and risks in the Strait of Hormuz dominated market sentiment. The gains came despite OPEC and the IEA cutting their 2026 demand forecasts, signaling weak long-term expectations.
The Xi-Trump summit in Beijing failed to deliver concrete measures to stabilize commodity markets, leaving traders focused on supply risks. Prior to the summit, analysts had hoped for clarity on trade policies or energy cooperation, but the meeting yielded little substance.
Markets reacted by pushing crude higher, with the $7 weekly gain reflecting renewed bullish sentiment amid persistent geopolitical uncertainties.