FX.co ★ Oil Holds Losses

On Thursday, WTI crude oil futures fell below $63 per barrel, maintaining losses from the previous session amid growing concerns about a global oil surplus. Leading oil producer Saudi Arabia is advocating for a substantial increase in OPEC+ production—at least 411,000 barrels per day in August, and potentially in September—as it strives to secure market share during the peak summer demand period. Additionally, Saudi Arabia has reduced its July crude prices for Asian buyers to levels not seen in nearly four years, indicating weakened demand from that region. Although official U.S. reports showed a decline in crude inventories, there was a larger-than-anticipated rise in gasoline and distillate stockpiles last week, putting further pressure on prices. At the same time, investors remain wary of the broader economic repercussions of the ongoing trade disputes, as Canada prepares possible retaliation and President Trump characterizes Chinese President Xi Jinping as a particularly challenging negotiating partner.