Oil prices experienced a modest decline on Friday but were poised for their first weekly gain in three weeks following the resumption of trade negotiations between U.S. President Donald Trump and Chinese President Xi Jinping. This development rekindled hopes for increased demand growth from the world’s two largest economies, underpinning positive sentiment in global energy markets.
The proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel Corp. has reached a critical juncture, as both the Japanese firm and the Trump administration jointly petitioned a U.S. appeals court to extend an ongoing judicial pause. This move comes as the parties seek more time to finalize a deal subject to national security scrutiny. The acquisition, first announced in late 2023, has since become a flashpoint for broader debates on foreign ownership of U.S. strategic assets.
Petroliam Nasional Bhd (Petronas), Malaysia's state-owned oil and gas enterprise, is set to reduce its workforce by approximately 10% as part of an overarching restructuring strategy to manage costs amid declining oil prices. CEO Muhammad Taufik announced that the company will reduce its personnel by over 5,000 employees and those affected will be notified in phases over the next year, alongside a hiring freeze extending to December 2026.
Mexican state-owned energy giant Pemex $PEMEX revealed on Wednesday a new institutional reorganization plan aimed at saving 4.8 billion pesos (approximately $250.04 million USD) over the next two years. This announcement comes as the company grapples with the largest corporate debt burden worldwide, prompting urgent cost-saving and restructuring measures.
The anticipated $14.9 billion acquisition of U.S. Steel $X by Japanese giant Nippon Steel Corporation $5401.T is moving closer to fruition, as Mexico’s antitrust regulator, Cofece, is expected to resume the review of the deal this Thursday. This development removes one of the final regulatory barriers to the merger, which was initially announced in December 2023. Nippon Steel’s acquisition aims to further consolidate the global steel industry amid shifting market dynamics and increasing pressures on supply chains.
Oil prices declined on Thursday following reports of increased gasoline and distillate inventories in the United States, combined with Saudi Arabia’s decision to reduce crude oil prices for Asian customers in July. These developments occurred against the backdrop of persistent global economic uncertainty, which continues to weigh on energy demand forecasts. Brent crude futures fell by $0.14, or 0.2%, to $64.72 per barrel, while West Texas Intermediate (WTI) futures in the US declined by $0.24, or 0.4%, to $62.61 per barrel as of 05:00 GMT.
On Wednesday, the US administration under President Donald Trump doubled tariffs on steel and aluminum imports, significantly intensifying global trade tensions. This escalation not only disrupted international markets but also accelerated trade negotiations between Washington and its key allies, particularly Canada and the European Union (EU). The unfolding developments highlight the fragile state of the world economy amid tariff-induced uncertainty.
On Tuesday, the United States announced a significant exemption for the United Kingdom from increased tariffs on steel and aluminum imports. This move came shortly after the British government declared that both countries had reached a mutual understanding on the urgent need to finalize a trade agreement aimed at reducing tariffs. President Donald Trump signed the statement exempting UK metals from the scheduled tariff hike, set to double to 50% for other nations starting June 4. This exemption underscores evolving trade relations between the US and the UK amid heightened global tariff tensions.
Asian oil markets experienced a modest decline on Wednesday as renewed concerns about increased production from the OPEC+ alliance and ongoing global tariff tensions weighed on investor sentiment. Despite underlying fears about potential supply disruptions from Canada and Iran, bearish pressures prevailed amid uncertainty over macroeconomic headwinds.
A new political clash over energy policy emerged this week as baseload power providers—energy companies ensuring stable, uninterrupted electricity—urged the U.S. Senate to preserve clean energy tax incentives. These incentives were effectively revoked last month when the Republican-led House of Representatives passed a bill to eliminate them.
Gold prices retreated on Tuesday, falling nearly 1% from a four-week high as the U.S. dollar (USD) gained strength and traders exercised caution ahead of a potential phone call between former U.S. President Donald Trump and Chinese President Xi Jinping. The renewed geopolitical focus, alongside currency dynamics, pressured the precious metal, traditionally viewed as a safe-haven asset during periods of uncertainty.
Vanguard Group, one of the world's largest asset managers, is preparing to introduce a new exchange-traded fund (ETF) that offers exposure to emerging markets while excluding China. The product, set to debut later this summer, reflects growing demand among institutional and retail investors for geopolitically de-risked portfolios, as U.S.–China tensions persist.
