FX.co ★ Brent Crude Oil Halts Three-Day Gain

Brent crude futures dipped below $65 per barrel on Wednesday following three consecutive sessions of gains. Market participants were awaiting key monthly reports from OPEC and the U.S. Energy Information Administration, with the International Energy Agency's updated outlook expected on Thursday. The IEA has adjusted its forecast on peak oil demand, now predicting that global consumption may continue to rise through 2050. Nevertheless, oil prices have softened this year due to expectations of an ample supply surplus, as OPEC+ resumes capacity and non-member producers increase their output. However, the decline in prices was limited as U.S. sanctions on Russia's leading oil companies, linked to the Ukraine conflict, seem to be impacting, with Lukoil announcing a force majeure on shipments from its West Qurna 2 field in Iraq. Concurrently, Saudi Arabia, Iraq, and Kuwait intend to increase their December exports to India, as refiners seek alternatives to Russian supplies. Additionally, optimism regarding a potential resolution to the U.S. government shutdown contributed positively to the demand outlook.