FX.co ★ WTI Crude Pulls Back on Higher OPEC Supply

WTI crude oil futures reversed their initial gains on Wednesday, slipping below the $63.2 per barrel level. This reversal wiped out the week's earlier increases as OPEC+ members ramped up supply, capturing investors' attention. Kazakhstan, a significant producer and exporter, declared its intention to prioritize its national interests over OPEC+ mandates, indicating an increase in production. The move could heighten tensions among cartel members, as several countries are finding it challenging to adhere to production quotas, despite OPEC+'s unexpected decision to triple output increments anticipated in May. Meanwhile, the United States has introduced new sanctions targeting a pivotal Iranian figure in LPG and crude shipping, sparking speculation that these sanctions might limit Iranian exports. On the demand side, global consumption forecasts remained ambiguous. The bearish impact of the US-China trade war is at odds with signals from the White House suggesting a potential reduction in tariffs.