FX.co ★ Brent Crude Sinks Over 3%

On Thursday, Brent crude oil futures experienced a decline of over 3%, dropping below $64 per barrel. This downturn was primarily due to mounting concerns about global oil oversupply. Speculation emerged following reports that Iran might be willing to negotiate with the United States for relief from sanctions, potentially reintroducing more Iranian oil into the global supply. Saudi Arabia expressed its full support for the US-Iran nuclear discussions, hoping for a favorable resolution. Adding to concerns about excess supply, recent data from the Energy Information Administration (EIA) revealed an unexpected increase in US crude oil inventories by 3.4 million barrels last week, after industry data had already indicated a 4.3 million barrel rise. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) has adjusted its 2025 forecast for oil supply growth from the US and other non-OPEC+ countries. The revised growth figure is now 800,000 barrels per day, down from the previous estimate of 900,000 barrels per day. Nonetheless, OPEC's strategy to continue increasing output exerts ongoing pressure on oil prices.