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Oil experienced a third consecutive day of decline on Friday, impacted by a surprise rise in U.S. inventories and rumors of increased production within OPEC+. Over the week, Brent fell to $66.20 per barrel and WTI to $61.70, a decline of roughly 2%.
Despite this drop, the oil market remains supported by several structural factors: ongoing geopolitical tensions in key producing regions and risks affecting global supply. These elements create volatility that can offer opportunities for investors able to navigate this unstable context.
Investing in oil can be attractive for several reasons:
Inflation hedge: Oil remains a key commodity, often correlated with global inflation.
Geopolitical risk as a price driver: International tensions can quickly support prices, providing short-term gain opportunities.
Stable structural demand: Despite the energy transition, global oil demand remains significant, especially for transportation and industry.
Conclusion: Oil represents a strategic investment for portfolios seeking exposure to commodities and potential short- to medium-term value appreciation, while staying alert to market volatility.
Knowledge is power.
