FX.co ★ Brent Pares Gains

Brent crude oil futures slightly declined to approximately $65 per barrel on Wednesday, modestly paring back gains from the prior session. This movement came as OPEC+ plans to increase production continued to alleviate worries about a tighter global supply. Additional relief came from rainfall in Canada, which helped mitigate wildfires that had affected about 7% of the nation’s oil output, enabling at least one oil sands company to resume operations. However, further losses were contained following industry data that showed an unexpectedly large decrease in US crude inventories. Stockpiles fell by 3.3 million barrels last week, significantly exceeding the forecasted decline of 0.9 million barrels. On the geopolitical front, risks continued to bolster prices. Ongoing concerns over potential supply disruptions due to the Russia-Ukraine conflict remained prominent. Furthermore, an Iranian diplomat suggested that Tehran was likely to reject a US proposal to resolve a longstanding nuclear dispute.