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.
Investment Recommendation: Why Consider Oil
Investing in oil can be attractive for several reasons:
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Inflation hedge: Oil remains a key commodity, often correlated with global inflation.
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Geopolitical risk as a price driver: International tensions can quickly support prices, providing short-term gain opportunities.
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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.