FX.co ★ Oil Falls on OPEC+ Supply Talks

WTI crude oil futures experienced a decline of 0.6%, closing at $61.2 per barrel on Thursday. This decrease was influenced by reports that OPEC+ is contemplating an increase in production come July, raising concerns over a possible surplus in supply. The proposed increment is said to be 411,000 barrels per day; however, a final decision remains pending. Additionally, prices were under pressure as US crude stockpiles unexpectedly grew by 1.3 million barrels last week, a result of higher import volumes and weakening fuel demand. The market's focus also shifted towards the impending fifth round of nuclear discussions between the US and Iran this weekend. These talks have mitigated fears regarding supply interruptions in the Middle East, especially after earlier threats of potential Israeli strikes on Iranian nuclear sites. With these factors potentially boosting supply, investors are cautiously evaluating whether demand will align, particularly since rising US Treasury yields signal a looming economic slowdown.