FX.co ★ Oil Falls amid Demand Fears and Global Supply Uncertainty

WTI crude oil futures declined to $61.2 per barrel on Thursday, influenced by disappointing US economic data and apprehensions regarding an increase in global supply. A recent US report indicated that the economy contracted in early 2025, sparking concerns about a potential decrease in fuel demand. Meanwhile, Kazakhstan announced that OPEC+ is expected to boost production during its meeting on Saturday, though the extent of this increase remains uncertain. Further intensifying concerns about demand, the head of the International Energy Agency noted China's oil consumption remains subdued. On the supply front, US crude inventories unexpectedly fell by 2.8 million barrels last week. Additionally, Libya's eastern government may suspend oil exports after a militia seized its state oil company, and wildfires in Alberta, Canada, have led to evacuations and the suspension of some oil production, threatening more than 200,000 barrels per day.