FX.co ★ Oil Rises on OPEC+ Output Cap

On Wednesday, West Texas Intermediate (WTI) crude oil futures climbed past $62 per barrel, enhancing the upward momentum seen in recent sessions. This rally comes as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have opted for a conservative production increase, opting for the smallest of the proposed increments, which fell short of the market's expectation for a more substantial rise. Concurrently, Russian crude exports have remained close to the highest levels observed in the last 16 months over the past four weeks. However, Ukrainian drone strikes have begun impacting Russian refineries, necessitating the rerouting of exports to alternative terminals. On a less optimistic note, the U.S. Energy Information Administration (EIA) has forecasted that U.S. production will hit an unexpectedly high record this year. Additionally, industry reports indicated a rise in inventories by 2.78 million barrels last week, surpassing the predicted increase of 2.25 million barrels. Market participants are now keenly awaiting government data due later today for further insights into supply conditions.