FX.co ★ Oil Rises After Two-Day Decline

WTI crude oil futures increased to approximately $67 per barrel on Wednesday, recovering from a two-day decline as traders concentrated on positive demand indicators from the United States and China. The demand outlook benefited from robust summer travel and an uptick in U.S. gasoline consumption, while China's better-than-expected second-quarter growth alleviated concerns about its energy demand amid tariff challenges. This situation aligned with the latest OPEC+ report, which anticipates a more robust global economy in the latter half of 2025, driven by increasing oil demand from India, China, and Brazil, along with ongoing recovery in the U.S. and European Union. Furthermore, a drone strike that disrupted production at Iraq's Sarsang field introduced a short-term geopolitical risk premium. However, potential gains were limited by reduced concerns about Russian exports following President Trump's 50-day ultimatum for Russia to end the conflict. Additionally, the API reported an unexpected increase of 19.1 million barrels in U.S. crude inventories, reaching a record high.