FX.co ★ Oil Extends Losses

West Texas Intermediate (WTI) crude oil futures dipped below the $64 per barrel mark on Thursday, adding to the downturn observed in the prior session. This decline comes as market participants digest the latest U.S. stockpile figures and a Federal Reserve rate adjustment. According to the Energy Information Administration (EIA), crude inventories decreased by 9.3 million barrels last week, largely attributed to a substantial increase in exports. Nonetheless, the sharp rise in the adjustment factor accompanied by distillate stocks reaching their highest point since January painted a bearish picture in the report. Concurrently, the U.S. Federal Reserve lowered interest rates by a quarter of a percentage point, aligning with expectations, and hinted at potential additional cuts to bolster a weakening job market. Despite this dovish shift, the market remains cautious as it may also reflect escalating economic dangers for a major oil-consuming nation. Additionally, investors are vigilant regarding the Russian oil supply situation, with recent escalations involving Ukrainian strikes on energy infrastructure. Reports had suggested that Transneft warned of possible production cuts; however, the company later refuted these claims, labeling them as misinformation.