FX.co ★ Oil Falls for 3rd Day

WTI crude oil futures declined to $66 per barrel on Wednesday, continuing a trend of losses for the third consecutive day. This decrease was primarily influenced by ongoing anxieties regarding a potential oversupply and the effects of U.S. trade tariffs on global economic growth, which could impact fuel demand. According to a weekly report from the EIA, there was an overall reduction of 3.86 million barrels in U.S. crude inventories. However, stockpiles at the Cushing, Oklahoma hub increased to their highest level since June. Additionally, U.S. distillate demand slightly decreased, despite inventories in this category, which includes diesel, falling to their lowest seasonal point since 1996. Traders remain cautious about the risk of oversupply, particularly as OPEC+ hastens the reinstatement of previously reduced output, while production across the Americas continues to rise. Concurrently, global demand growth appears to be slowing, and there are ongoing worries that President Trump's intensifying tariffs on significant trading partners could further hinder economic activity and reduce oil consumption.