-What happened last week?
The 6 percent rise in crude oil prices over four days of trading was one of the most important developments last week. The U.S.’ urging of allies to stop Iranian oil imports, along with the decline in U.S. crude inventories and the number of oil rigs contributed to the price increase.
International benchmark Brent crude climbed to as high as $79.56 per barrel on Friday, its highest level since May 24, and posted a 6.5 percent gain since it closed Monday at $74.73 a barrel.
After closing Monday at $68.08 per barrel, American benchmark West Texas Intermediate (WTI) rose to as high as $74.44 a barrel on Friday, its highest level since Nov. 26, 2014. This provided WTI with a gain of 9.3 percent over the last four trading days.
On Tuesday, the U.S. urged allies and companies to stop buying crude oil from Iran by Nov. 4 -- a move that worried investors of a sudden decline in Iranian crude exports while possibly creating supply shortages on the global market, which could result in higher prices.
On Wednesday, the U.S. Energy Information Administration (EIA) said commercial crude oil stocks in the country last week were down 9.9 million barrels, or 2.3 percent, from the previous week and resulted in slightly higher crude prices. The market expectation was a decline of 2.6 million barrels.
And, on Friday, oilfield services company Baker Hughes data revealed a decline in the total number of oil rigs in the U.S. for the second week in a row, intensifying the upward pressure on oil prices.
-Trump asks Saudis to raise oil output to lower prices
President Donald Trump, who has long been a critic of high oil prices, said Saturday that he asked Saudi Arabia to increase its oil production in order to reduce prices in the global oil market.
"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference...Prices too high! He has agreed!" Trump wrote on his Twitter account.
In the past when Trump was a businessman, he blamed the Organization of Petroleum Exporting Countries (OPEC) for keeping oil prices and has recently reiterated his criticism against the cartel.
Although high oil prices benefit U.S. shale oil producers in ramping up output and increasing their revenues, it is believed that Trump prefers keeping prices low for American consumers at pumping stations prior to the mid-term elections in November.
It is yet unknown whether the Saudis, the world's biggest crude exporter and OPEC's heavyweight, will actually commit to Trump's request in the short-term without consulting with the cartel and Russia first. Last week, OPEC-led Saudi Arabia and non-OPEC member Russia agreed to boost crude production by a total of 1 million barrels per day (bpd) for the remaining of the year.
-Trump to wait after midterms to sign new NAFTA deal
Trump said Sunday he wants to wait until after the midterm elections in November to sign a new North American Free Trade Agreement (NAFTA) with Canada and Mexico.
“NAFTA, I could sign it tomorrow, but I’m not happy with it. I want to make it , okay?” Trump told Fox News in an exclusive interview. "I want to wait until after the election. You’re going to have an election. I think it’ll be very interesting. I think it’s going to be fine," he added.
Trump called NAFTA "the worst deal ever" during his campaign and presidency. After taking office, he requested the agreement be renegotiated in order to make it "fair" for his country, with the aim of reducing the U.S.’ trade deficit. NAFTA has been in effect since the beginning of 1994, but renegotiations between the U.S., Canada Mexico started last year and are still ongoing.
However, Trump’s imposition of tariffs on steel and aluminum imports to the U.S. in March has strained relations between the three countries. Canada responded to the U.S. on Friday by imposing $12.6 billion in retaliatory tariffs against American products that will take effect on Sunday.
-Trump reportedly wants to withdraw U.S. from WTO
Trump wants to withdraw the U.S. from the World Trade Organization (WTO), according to a report on Friday, which could further isolate the country and greatly hurt global trade,
"He’s [threatened to withdraw] 100 times. It would totally [screw] us as a country," a source, who discussed the subject with Trump, told the Axios media outlet. The source also said Trump has frequently told his advisers, "We always get [expletive] by them. I don’t know why we’re in it. The WTO is designed by the rest of the world to screw the United States."
After the report, Treasury Secretary Steven Mnuchin told Fox Business, "There’s no breaking news here," and added, "but this is an exaggeration."
If Trump withdraws the U.S. from the WTO, it could be the last straw to break the camel’s back in the recent trade wars the U.S. has engaged with nations around the world.
-Bitcoin hits its lowest level since November
The world's most valuable and popular cryptocurrency bitcoin slipped below the $5,800 mark Friday -- its lowest level since November.
Last year, it managed to climb to an all-time high of $19,892 on Dec. 17. Since then, the cryptocurrency lost around 71 percent in value and 58 percent since the beginning of this year.
Concerns about security and rising regulations have so far kept global investment banking firms and large money managers away from investing in bitcoin and other cryptocurrencies.
However, there are still sizable small- and medium-scale investors who find virtual currencies an attractive instrument for various reasons -- from seeking short-term profits to taking investments out of Asian countries, or for illegal transactions.
Most Wall Street analysts bitcoin's meteoric rise and steep decline to the dot-com bubble in 2000, or Dutch tulip mania in the 17th century.
-US energy sector slams opposition against fossil fuels
U.S. Energy Secretary Rick Perry criticized the opposition to fossil fuels on Tuesday, declaring that countries should be able to use all types of energy resource at their disposal.
Speaking at the World Gas Conference held in Washington, D.C., Perry said, "I wish I could tell you that the entire developed world is on board with our vision. I wish I could, but I cannot ... In some quarters, at home and abroad, there is still this stubborn opposition to natural gas and other fossil fuels."
Perry, who is a strong supporter of Trump's energy revolution to make his country a dominant player in the world, favors an "all-of-the-above" approach that envisions the U.S.’ use of every energy resource -- from oil and gas to coal and renewables.
"The opposition exists even as fossil fuels become cleaner and low-emission natural gas increases its share of total fossil production and use. These opponents flatly reject the all-of-the-above strategy, the innovation-driven strategy that's helping us achieve energy security," Perry said.
"The answer is not to exclude oil and gas and coal from the world's energy mix. [...] We must honor the right of every nation to responsibly use every fuel at its disposal," he added.
While critics argue that the use of fossil fuels is a major reason for global warming, Perry said in June 2017 that he did not believe CO2 emissions were the main driver behind climate change. He also bashed global warming in 2011 by arguing that scientists were manipulating environmental data for financial gains and later proposed the elimination of the U.S. Department of Energy in 2012.
- What to expect from this week?
Investors and the markets will closely watch the U.S.' non-farm payrolls and unemployment rate data for June to be released Friday.
Since Wednesday is Independence Day - July 4, U.S. federal offices will be closed and most macroeconomic data will be out on Thursday instead.
The U.S.' weekly change in crude oil production and inventories will be announced on Thursday, while the change in the U.S.' oil rig count will be announced on Friday.
On Thursday, the Federal Reserve's minutes from its June meeting will be released.
The Fed increased its benchmark interest rate by 25 basis points on June 13 to a target range of 1.75 percent to 2 percent.
This marked the second rate hike for the year and the seventh since December 2015. The central bank made three rate hikes last year and one in December 2016.
The minutes will show how the bank perceives the American economy. It will also give hints about the pace of raising interest rates.
