FX.co ★ Oil Falls for 3rd Session

The futures for West Texas Intermediate (WTI) crude oil saw a slight decline, settling at approximately $59.30 per barrel on Thursday. This dip follows recent price reductions by Saudi Aramco, targeted specifically at Asian markets, and ongoing concerns surrounding supply stability. While Saudi Aramco's decision was anticipated, there remains significant uncertainty due to US-imposed restrictions on purchasing Russian oil and persistent attacks by Ukraine on Russian energy infrastructure. India, which relies heavily on imported oil, is urgently seeking alternative sources as sanctions complicate and increase the risks associated with acquiring Russian crude. Remarkably, even Reliance, a significant Indian refiner, has resorted to reselling Middle Eastern oil shipments, which is not its usual practice. Meanwhile, an increase in output from OPEC+ nations and other producers has exacerbated fears of potential oversupply in the market. Nonetheless, oil prices have rebounded somewhat since the imposition of US sanctions on Russia's leading oil corporations.