FX.co ★ WTI Crude Oil Fluctuates Near $67

Oil prices have experienced minor fluctuations over the past two weeks, settling around $67 per barrel for WTI crude futures. On the positive side, market sentiments have been influenced by heightened tensions in the Middle East, as evidenced by Israel's initiation of a new ground operation in Gaza, thereby ending a two-month period of relative peace. Additionally, the prospect of a ceasefire between Ukraine and Russia remains elusive, despite a temporary pause in attacks on energy facilities. From a demand perspective, U.S. gasoline inventories have dropped to their lowest levels since the beginning of the year, and stocks of distillates, which include diesel, have also seen reductions, mitigating concerns regarding consumption. Crude oil stockpiles have increased, albeit at a slower pace than anticipated by the American Petroleum Institute, and inventories at the Cushing, Oklahoma storage hub have decreased. Conversely, OPEC+ is expected to raise production by 138,000 barrels per day in April, marking its first production hike since 2022. This development may lead to a surplus and apply downward pressure on prices.