FX.co ★ Oil Extends Gains

Crude oil futures for West Texas Intermediate (WTI) moved above the $59 per barrel mark on Thursday, building upon gains from the prior day. This rise was largely fueled by recent Ukrainian attacks on Russian oil infrastructure and halted peace discussions, which dimmed prospects for the resumption of Russian oil supplies. Notably, Ukraine targeted the Druzhba oil pipeline located in Russia’s Tambov region, marking the fifth assault on this key supply line that services Hungary and Slovakia. Despite this, both the pipeline's operator and Hungary's primary oil company reported that normal flows were maintained. In parallel developments, U.S. envoys concluded their talks with the Kremlin without any significant progress, as President Trump mentioned uncertainties regarding the next steps. Additionally, the geopolitical risk escalated with the U.S.'s heightened threats towards Venezuela's oil sector. Nonetheless, the upward momentum in oil prices was tempered by concerns over sluggish demand and the possibility of excess supply. This was underscored by data from the Energy Information Administration (EIA), which indicated that U.S. crude oil inventories increased by 574,000 barrels during the past week, complemented by rises in gasoline and distillate stocks.