FX.co ★ Oil Halts 3-Day Decline

WTI crude oil futures stabilized near $60 per barrel on Wednesday, halting a three-day decline as market participants evaluated the implications of U.S. sanctions on Russia juxtaposed with ongoing concerns about an oversupply. Following Washington's sanctions imposed on Rosneft and Lukoil, Russia's leading oil companies, traders are closely observing the potential repercussions. Concurrently, India's state-owned refiners are deliberating on the feasibility of continuing to purchase discounted Russian oil through suppliers not affected by sanctions. Industry reports have indicated a reduction of four million barrels in U.S. crude inventories, alongside decreases in gasoline and distillate stockpiles, though reserves at the crucial Cushing, Oklahoma storage hub have risen. Despite these developments, oil remains poised for a third consecutive monthly decline due to anticipated global oversupply, with OPEC+ reportedly considering an additional output increase in its upcoming meeting. Additionally, traders are monitoring developments toward a U.S.-China trade agreement in anticipation of the Trump-Xi meeting.