FX.co ★ Oil Hovers Near 4-Week High

On Thursday, WTI crude oil futures settled around $69.70 per barrel, marking a near four-week peak. This rise reflects robust demand and concerns over global supply constraints. Recent government reports indicate that U.S. crude inventories experienced a significant drop of 3.34 million barrels last week, the most considerable decline since December, along with a reduction in gasoline stocks. Concurrently, the Trump administration's sanctions and tariffs could lead to potential disruptions from key oil producers such as Iran and Venezuela. India’s Reliance Industries, which operates the world's largest refining facility, has announced plans to cease imports of Venezuelan oil in light of the new tariffs. Additionally, market participants are weighing the implications of a proposed 25% tariff on automobiles by President Trump, which might affect oil consumption and impede the shift towards cleaner energy vehicles. Despite a marginal increase in U.S. oil and gas activities in the first quarter, a Dallas Federal Reserve survey highlights continued pessimism among energy sector executives.