Global Oil Market Sees Gains on Tight Supply and Rising Demand
Crude oil prices posted gains on Thursday, driven by shrinking U.S. inventories and renewed demand optimism. Brent crude was last seen at $68.76 per barrel, while WTI crude climbed to $66.71 both benchmarks extending their recent upward trend.
The Energy Information Administration (EIA) reported a sharp 3.9 million-barrel drop in U.S. stockpiles. Analysts point to robust summer travel, increased industrial activity, and global shipping movement as key contributors to demand growth.
Energy investors are also responding positively to improved trade signals from major economies such as India, the U.S., and Europe, which could support broader consumption trends in the second half of 2025.
Fed Independence Questioned: Market Reacts to Trump’s Powell Remark
Financial markets briefly wobbled after former U.S. President Donald Trump said he once contemplated removing Federal Reserve Chairman Jerome Powell from his post. Though he clarified that he didn’t follow through, the comment stirred debate on central bank autonomy.
However, equities stabilized shortly after:
- The Nasdaq Composite flirted with record highs.
- The S&P 500 managed moderate gains.
- The Dow Jones recovered losses to end in positive territory.
Analysts say while the political noise rattled short-term sentiment, underlying market strength remains intact at least for now.
Tech Sector Shines: TSMC’s Strong Q2 Results Lift Global Chips
Semiconductor heavyweight TSMC exceeded Q2 earnings expectations, reinforcing the ongoing demand boom in artificial intelligence and automotive chips. The company also upped its capital spending projections, a signal of confidence in future growth.
This uplift had a domino effect across tech stocks:
- Nvidia, AMD, and Intel rallied.
- ASML remained subdued, citing manufacturing delays.
Market watchers say strong earnings from TSMC could support the tech rally through the ongoing earnings season.
Regional Market Roundup: Asia Moves Mixed
Asian stock indices saw mixed results:
- Japan’s Nikkei 225 rose 0.6% on tech-led buying.
- Australia’s ASX 200 added 0.9%, led by commodities.
- South Korea’s Kospi edged up 0.2%.
- Thailand’s SET Index surprised markets with a 2.9% jump.
- China’s Shanghai Composite remained unchanged amid caution over the real estate sector.
Global investors are closely monitoring Asia as macro headwinds and policy recalibrations play out differently across the region.
Indian Indices Slide Slightly on Weak Global Cues
India’s benchmark indices, Sensex and Nifty 50, ended the day in negative territory. The Nifty slipped below the 25,200 mark while the Sensex closed more than 100 points lower.
Factors influencing the decline included:
- Concerns over RBI’s next rate decision
- Disappointing earnings from select large-cap firms
- Global volatility following Powell-related developments
Foreign institutional investor activity remained tepid, and traders largely stayed on the sidelines awaiting clearer cues.
Currency & Central Bank Insights: Inflation Still in Focus
The U.S. Dollar Index showed some intraday swings following the Powell headline but regained footing as clarity emerged. Meanwhile, central banks in Europe, the UK, and parts of Asia are treading cautiously, with few signs of imminent rate cuts.
A recent Bank of America global survey highlighted a decline in fund manager cash levels to 3.9%, the lowest since 2013 a possible sign of growing risk appetite, but also fragility.
Earnings and Data Ahead: What’s Driving Sentiment Next?
Market participants now await several key data releases and earnings results:
- U.S. retail sales figures and weekly jobless claims
- Corporate earnings from Tesla, Netflix, and major U.S. banks
- Central bank commentary on growth vs. inflation
Volatility could pick up if the numbers surprise in either direction. Investors are advised to remain selective and watchful of valuation risks.
Bottom Line: Markets Balanced Between Optimism and Uncertainty
Despite strength in oil and tech, financial markets remain on edge due to political noise and monetary policy ambiguity. While risk appetite is evident, it’s tempered by caution as the second half of the year unfolds.
