FX.co ★ Oil Holds Near 5-Week High

WTI crude oil futures remained steady above $69 per barrel on Wednesday, reaching the highest level in five weeks. This stability is attributed to potential supply interruptions arising from escalating geopolitical tensions and progress in global trade relations. Recently, President Donald Trump issued an ultimatum to Russia, giving them ten days to provide a satisfactory resolution to the Ukraine conflict, with the threat of severe economic sanctions looming. Further, a US representative cautioned that strict secondary sanctions could be enforced against countries that continue to purchase Russian crude if no accord is reached within this timeframe. In parallel, the newly established US-EU trade agreement, which includes a 15% tariff on most European Union goods, successfully avoided a significant trade conflict that could have impacted one-third of global trade and subsequently decreased fuel demand. However, oil prices experienced some downward pressure after the American Petroleum Institute (API) reported an unexpected inventory increase of 1.5 million barrels, countering forecasts of a 2.5 million-barrel decrease and reversing the previous week's draw of 577,000 barrels.