FX.co ★ Oil Extends Losses

WTI crude oil futures continued their recent decline, nearing $66 per barrel on Wednesday, largely due to the anticipation of increased Russian supply. This development comes after President Putin agreed to suspend attacks on Ukrainian energy facilities while dismissing a proposal for a 30-day ceasefire. The potential easing of Russian sanctions has further fueled concerns over a possible surplus, coinciding with OPEC and its allies' plans to increase production in the coming month. Additional downward pressure comes from evolving global trade patterns, which may inhibit growth and decrease consumption. Indications of waning demand have surfaced, as recent industry data revealed a higher-than-expected increase in crude oil inventories last week. Nonetheless, escalating violence in the Middle East threatens supply disruptions from key oil-producing regions, which has helped mitigate some of the losses.