FX.co ★ Brent Crude Falls

Brent crude oil futures dropped below $62 per barrel on Thursday, reversing gains from the previous day. This decline followed reports that President Trump’s proposed peace plan for Ukraine includes the restoration of Russian energy supplies to Europe, alleviating earlier supply concerns. These concerns arose when the U.S. intercepted a sanctioned tanker near Venezuela, leading to a reduction in shipments and increased fears of rising tensions. Additionally, Ukraine targeted a shadow-fleet tanker linked to Russia's oil trade. The market also faced downward pressure from a broadly bearish outlook, as rising output from OPEC+ and its allies is anticipated to surpass weak demand, potentially leading to a supply surplus. Fresh monthly reports from OPEC and the IEA, expected today, could shed further light on the market equilibrium. Meanwhile, US government data indicated a reduction in crude inventories by 1.8 million barrels last week, though stocks at Cushing, Oklahoma did increase after enduring four weeks of reductions, still holding at their lowest seasonal level since 2007.