FX.co ★ Brent Eases on Higher US Stockpiles

Brent crude oil futures dipped to approximately $66 per barrel on Wednesday, following a 2.6% increase the previous day. This change occurred after an industry report disclosed an unexpected increase in US crude inventories. According to the American Petroleum Institute (API), inventories grew by 4.29 million barrels last week, marking the largest rise in six weeks and contradicting predictions of a 2.4 million-barrel decrease. Despite the inventory surge, oil prices remained close to a two-week high due to new threats of sanctions against Iran and an optimistic global trade outlook. Further support for prices came from the interim tariff agreement between the US and China and a softer US dollar, which made commodities priced in dollars more attractive. Market participants are now focusing on President Trump's visit to the Middle East, scheduled during a period of peak fuel demand, with the stability of oil prices likely being a significant concern.