FX.co ★ Oil Pares Losses

WTI crude oil futures rose above $65 per barrel on Wednesday, rebounding from recent significant losses, as investors assessed the stability of the Iran-Israel ceasefire. A preliminary U.S. intelligence report indicated that the latest U.S. airstrikes on three Iranian nuclear sites have only set back Iran's nuclear ambitions by a few months, prompting concerns about renewed conflict in the region. The U.S.-mediated truce remains tenuous, with both parties accused of continuing hostilities soon after the ceasefire began. Concurrently, industry reports revealed a reduction in U.S. crude inventories by 4.28 million barrels last week, greatly surpassing the anticipated 0.6 million-barrel decline. This marks the fourth straight weekly reduction and the sixth in eight weeks, suggesting a tightening supply. Nevertheless, the International Energy Agency (IEA) maintains emergency reserves of 1.2 billion barrels, and several OPEC+ nations are ready to increase production with available spare capacity if necessary.