FX.co ★ WTI Settles Lower for 2nd Day

WTI crude oil futures experienced a decline of 0.7%, closing at $58.3 per barrel on Wednesday. This marked the second consecutive day of losses, with prices hovering near a five-month low. The dip in oil prices is largely attributed to enduring trade tensions between the US and China alongside growing concerns over supply. The International Energy Agency issued a warning regarding a potential global oil market surplus of up to 4 million barrels per day by 2026, which has increased fears regarding weak demand. The renewed trade conflict between the world’s two biggest oil consumers, manifested in new port fees and tariff threats, has further disrupted global freight activities, adversely affecting market confidence. Additionally, an expected weekly rise in US crude inventories has reinforced the signs of oversupply, suggesting it could be the third consecutive week of stock increases. Market participants are now keenly anticipating the release of official US inventory data for more definitive insights into demand trends, as the market continues adjusting to the resumption of OPEC+ production.