Markets Under the Microscope: Oil Maintains Momentum, Gold in Limbo, and Renewable Energy Faces a Reality Check

Amid geopolitical shifts and economic volatility, strategic commodity markets such as
oil, gold, and gas are experiencing a mix of anticipation and challenge,
as political, financial, and environmental factors intertwine to shape the next phase.

Contents

Oil
Gold
Gas and Renewable Energy

Oil

Between Market Gains and Rising Geopolitical Pressures

Stable Prices Amid International Tensions

Despite easing fears following a ceasefire between Israel and Iran, oil prices held onto their gains,
supported by U.S. President Donald Trump’s reaffirmation of his “maximum pressure campaign” on Iran’s oil exports.
Brent crude hovered around $68 per barrel, while West Texas Intermediate (WTI) steadied at $65.

Stockpile Declines Support the Market

U.S. government data revealed a decline in crude oil inventories for the fifth consecutive week, signaling tight supply conditions, which positively impacted prices. The drawdown also included the key Cushing storage hub, reinforcing market expectations for continued support.

All Eyes on OPEC+

With the upcoming OPEC+ meeting in July, anticipation is growing regarding future production decisions. Russia has signaled a willingness to raise output if necessary, reflecting the delicate balance between price support and market share preservation.

Gold

Between Fed Policy and Shifting Political Tensions

Cautious Price Stability

Gold is trading near $3,335 per ounce as markets await the Federal Reserve’s interest rate decision, coinciding with a gradual de-escalation in geopolitical tensions—especially after Trump declared that the conflict with Iran is “effectively over.”

Interest Rates and Inflation: Mixed Signals

Investors are closely watching statements by Federal Reserve Chair Jerome Powell, who noted the uncertain impact of Trump-imposed tariffs on inflation. If inflation remains subdued, it may accelerate interest rate cuts—a bullish signal for gold, which offers no yield.

Central Bank Demand Supports Gold

Although gold’s sharp rally paused over the past two months, continued central bank demand and the prospect of rate cuts are keeping the precious metal trading near its recent highs compared to previous years.

Gas and Renewable Energy

Between Rapid Growth and Structural Challenges

Gas Makes a Strong Comeback

In 2024, global gas consumption rose by 2.5% after a year of decline, reaffirming gas’s critical role in the global energy mix, especially in Asia and Latin America. Even Europe, which has been moving to reduce its reliance on gas, saw consumption grow for the first time since 2021.

Renewable Energy Grows, But Not Fast Enough

Despite a 16% surge in wind and solar energy, the increase was insufficient to meet rising global demand. According to the Energy Institute in London, renewables are adding to overall energy consumption rather than displacing fossil fuels.

European Challenges and Asian Momentum

Offshore wind projects in Europe are facing mounting difficulties due to rising costs and high interest rates, while China and other emerging markets continue to drive growth. This situation points to a chaotic rather than orderly energy transition, adding complexity to long-term climate efforts.

Markets Under the Microscope: Oil Maintains Momentum, Gold in Limbo

Markets Under the Microscope: Oil Maintains Momentum

Related Topics