FX.co ★ Brent Pares Losses

Brent crude oil futures experienced an uptick on Thursday, surpassing $61 per barrel. This recovery comes after a dip in the previous session and is bolstered by a more significant reduction in US crude inventories than anticipated, alongside preliminary indications of a potential realignment in supply. Recent government reports highlight that crude stockpiles diminished by over 2 million barrels last week, exceeding the forecasted 1.7 million-barrel decline. Nevertheless, an increase in gasoline prices has triggered concerns about whether demand is strengthening as the US approaches the summer driving season. Although there was a slight recovery, oil prices still hover near multi-year lows due to persistent uncertainties surrounding US-China trade negotiations—the globe's leading oil-consuming nations. Further challenges stem from OPEC+'s strategy to expedite production hikes, coupled with the Federal Reserve's decision to maintain interest rates unchanged amid a context of growing economic uncertainties.