FX.co ★ WTI Oil Jumps 3% as Iran Cuts IAEA Ties

West Texas Intermediate (WTI) crude oil futures experienced a notable increase of 3%, closing at $67.4 per barrel on Wednesday. This rise occurred against a backdrop of heightened geopolitical tensions, following Iran's decision to halt cooperation with the U.N. nuclear oversight body. This development coincided with an unexpected increase in U.S. crude oil inventories. Although Iran's actions introduced a slight risk premium to the oil prices, analysts emphasize that there have been no tangible supply disruptions. Concurrently, U.S. crude inventories saw an unexpected increase of 3.8 million barrels, and gasoline demand decreased to 8.6 million barrels per day, a figure significantly below the healthy benchmark of 9 million typically expected during summer months. In parallel, OPEC+ remains on course with plans to incrementally boost production, adjustments that the market has largely anticipated, particularly as Saudi Arabia amplifies its exports in June. Market participants are now closely monitoring the upcoming U.S. employment report, which could potentially shape expectations surrounding Federal Reserve interest rate cuts and consequently impact the outlook for oil demand.