FX.co ★ Oil Holds Gains

On Wednesday, West Texas Intermediate (WTI) crude oil futures remained steady at approximately $65.7 per barrel, sustaining a gain exceeding 1% from the previous day. This increase was largely driven by U.S. sanctions and persistent supply concerns. The U.S. recently imposed sanctions on maritime entities and vessels associated with an Iraqi-Kittitian businessman implicated in transporting Iranian oil under the guise of Iraqi oil. Additionally, supply constraints were exacerbated following Ukrainian drone strikes that incapacitated facilities accounting for around 17% of Russia’s refining capacity, with President Zelenskyy pledging further attacks. Providing slight support to the market, industry reports indicated a reduction in U.S. crude stockpiles by nearly one million barrels last week, although this decrease was less than the anticipated 1.7 million barrels. Meanwhile, weak U.S. economic data, particularly with the manufacturing sector contracting for a sixth consecutive month due to tariffs, dampened oil demand. Looking ahead, traders are focused on the upcoming OPEC+ meeting on September 7, although analysts do not foresee any immediate changes in output.