FX.co ★ Oil Pares Gains

WTI crude oil futures experienced a decline to approximately $67 per barrel on Thursday, giving back some gains from the previous session. This decrease was primarily driven by an increase in U.S. crude stockpiles and the anticipation of a production hike by OPEC+, which somewhat diluted the geopolitical risk premium. According to official data, U.S. crude inventories rose by 3.85 million barrels last week, contradicting forecasts that anticipated a 2 million barrel reduction. This marks the most significant inventory increase in three months. It also seems that OPEC+ is poised to increase output by 411,000 barrels per day in August, cumulatively increasing production by 1.78 million barrels per day in 2025, equivalent to over 1.5% of global demand. In contrast, oil prices had surged by more than 3% on Wednesday following Iran's cessation of cooperation with the UN nuclear watchdog, which contributed a modest risk premium despite no actual interruptions in supply. Further bolstering the market, the United States announced a trade agreement with Vietnam, easing trade concerns and fostering optimism for additional negotiations that could influence the energy market outlook, with expectations for more agreements before the upcoming deadline next week.