FX.co ★ Oil Falls for 3rd Session

WTI crude oil futures declined to $57.8 per barrel on Wednesday, marking a third consecutive session of losses and nearing a seven-week low. This downturn is largely attributed to persistent worries about an oversupply in the global market. Market sentiment weakened following projections from U.S. energy authorities indicating that domestic crude production is expected to reach a record 13.6 million barrels per day this year, further contributing to the already ample global supply. Investors are keenly awaiting pivotal reports from the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) later this week, hoping for clearer insights into demand and supply dynamics. Moreover, diplomatic endeavors to resolve the Russia-Ukraine conflict remain in focus, as a resolution could reduce the geopolitical risk premium currently factored into oil prices. Recent data from the Energy Information Administration (EIA) showed a decrease in U.S. crude inventories by 1.812 million barrels last week, although gasoline and distillate stockpiles experienced a significant increase.