FX.co ★ Brent Remains Tepid

Brent crude oil futures hovered around $64 per barrel on Wednesday, maintaining proximity to a four-year low as ongoing concerns about oversupply and global trade tensions continue to affect the market's outlook. The International Energy Agency (IEA) has significantly reduced its 2025 demand forecast, predicting the slowest growth in five years, and cautioned that a worldwide oversupply might extend through 2026. Contributing to supply worries, OPEC+ is ramping up production, and advancements in the US-Iran nuclear discussions could potentially increase Iranian oil exports. Furthermore, President Trump's scrutiny of tariffs on critical minerals — a move that could impact relations with key suppliers such as China — might escalate tensions between the two economic powers, potentially hindering economic progress and oil demand. Additionally, data from the American Petroleum Institute (API) indicated a 2.4 million barrel increase in US crude inventories last week, contrary to expectations of a 1.68 million barrel reduction.