FX.co ★ Oil Rises After 4-Day Decline

WTI crude oil futures climbed above $65 per barrel on Wednesday, breaking a four-day downward trend and recovering from a recent five-week low. This upward movement was fueled by growing concerns over potential disruptions in supply. Market participants are evaluating possible shifts in supply dynamics, particularly as India considers reducing its Russian oil imports. This consideration follows U.S. President Trump's threats of imposing higher tariffs on Indian goods due to their ongoing oil purchases from Russia. Trump issued a warning of increased tariffs within a 24-hour timeframe as a strategy to encourage Russian President Vladimir Putin to cease the ongoing conflict in Ukraine. In addition to the upward momentum, data from the American Petroleum Institute (API) revealed a 4.2 million barrel decline in U.S. crude stockpiles over the last week, significantly outperforming market forecasts of a 1.8 million barrel reduction and indicating a stronger-than-expected demand. Nevertheless, the upward gains were limited by concerns of oversupply after OPEC+ recently communicated plans to boost oil production by 547,000 barrels per day in September, prematurely concluding its latest round of output reductions.