FX.co ★ Oil Resumes Fall

WTI crude oil futures experienced a 1% decline to $59.5 per barrel, following a 3.4% rebound the previous day. This drop occurred even though the Energy Information Administration (EIA) reported a larger-than-expected reduction in US crude oil inventories. The stockpiles fell by 2.032 million barrels last week, which exceeded the market's forecast of a 1.7 million barrel decline. Despite this data, oil markets remain under pressure due to OPEC+ plans to increase production faster than previously intended. This move has heightened concerns of an oversupply, particularly as US tariffs continue to negatively impact the global demand perspective. Although crude prices have recently plummeted to four-year lows, there are indications of a possible supply correction. Some US companies, such as Diamondback Energy and Coterra Energy, have started to cut back on drilling activities. Analysts suggest this may eventually constrict supply and potentially boost prices over time. Additionally, market participants are closely watching the Federal Reserve's upcoming rate decision, with many anticipating that rates will remain unchanged amid escalating economic uncertainties tied to ongoing trade disputes.