FX.co ★ Oil Rebounds after EIA Data

On Wednesday, WTI crude oil futures climbed to $63.80 per barrel, bouncing back from a 2.4% decline observed on Tuesday. This recovery followed U.S. government data revealing a more substantial inventory decrease than anticipated. Specifically, crude stockpiles dropped by 2.39 million barrels, reaching 418.3 million, surpassing market expectations. Additionally, stocks at the pivotal Cushing hub diminished by 838,000 barrels. While gasoline reserves dipped by 1.2 million barrels, which was less than forecasted, distillates saw a reduction of 1.8 million barrels, counter to predictions for a rise. These statistics indicate that the demand for fuel remains robust despite apprehensions regarding the potential impact of tariffs on consumption in the coming months. Exerting further strain on trade prospects, Washington escalated tariffs on Indian imports to 50%, marking the most significant U.S. tariff imposed on an Asian country. This move was in response to New Delhi's persistent procurement of Russian oil. Despite the heightened duties, Indian refiners have expressed their intention to continue their purchasing practices.