FX.co ★ Brent Flat on Higher US Stockpiles

On Wednesday, Brent crude oil futures remained steady around $67 per barrel, following gains recorded in the prior session. This stability came after industry data indicated an unexpected rise in U.S. crude inventories. According to the API report, there was an increase of 0.68 million barrels last week, which interrupted a four-week trend of decreasing inventories and contradicted expectations of a 2.26 million-barrel decline. Investors are exercising caution as they await the OPEC+ decision on output, with the organization planning to boost production by 411,000 barrels per day in August. This brings the total production increase to 1.78 million barrels per day in 2025, equating to more than 1.5% of global demand. The adjustment is perceived as a consequence for overproducing members and an attempt by Saudi Arabia to reclaim market share from U.S. shale producers and others. Concurrently, the easing of geopolitical tensions, notably the continuation of the Israel-Iran ceasefire, has diminished the risk premium associated with oil. However, the global outlook remains uncertain due to potential new U.S. tariffs post the July 9 deadline, which continues to cast a shadow over prices.