FX.co ★ WTI Crude Falls For 3rd Day, Settling Below $63

WTI crude oil futures experienced a decline of 1.4% on Friday, closing at $62.70 per barrel, marking the third consecutive session of losses. This was primarily due to abundant supplies and concerns over weakening demand, which overshadowed the optimism surrounding the U.S. Federal Reserve's recent interest rate cut aimed at boosting consumption. Despite factors like robust global production, ongoing refinery maintenance, and increasing U.S. distillate inventories limiting immediate price increases, there were some supportive elements. Repeated Ukrainian attacks on Russian energy infrastructure and potential international sanctions provided a degree of support, yet the persistent oversupply concerns continued to suppress prices. Additionally, traders remained vigilant regarding the developments in U.S.-China-India relations, which could potentially impact Russian crude flows, while a stronger dollar further reduced demand for dollar-priced commodities. Although the Fed implemented a 25-basis-point interest rate reduction, indications of a softening labor market and slowing economic activity dampened prospects for a sustained market rally.