FX.co ★ Brent Crude Rebounds

Brent crude oil futures experienced an upswing, reaching $63.3 per barrel on Wednesday. This increase was primarily due to recent attacks on Russian energy infrastructure, which overshadowed the ongoing perception of an oversupplied oil market. Concerns about the stability of Russian oil and fuel supplies intensified following strikes on Russian tankers and refineries. Consequently, the Kremlin has issued warnings of potential retaliatory actions against Ukraine's allies should these strikes persist. The geopolitical risk remains elevated as the US and Russia have yet to broker a peace agreement with Ukraine, heightening the potential for disruptions to Russian refining and shipping capabilities. Additionally, the US has increased its rhetoric against Venezuelan oil activities. Despite these tensions, tanker activity has shown that Russian oil shipments have reached a five-month peak, propelled by US sanctions hindering delivery. These factors have somewhat counterbalanced the effects of increased production quotas from OPEC+ countries and rising output from the US, Canada, and Brazil, even as the International Energy Agency maintains its forecast of an oil surplus in the coming year.