FX.co ★ Oil Remains Tepid

West Texas Intermediate (WTI) crude oil futures hovered around $61 per barrel on Wednesday, maintaining proximity to a four-year low. This price point reflects ongoing concerns over oversupply and global trade tensions that continue to cast a shadow on the oil market's outlook. The International Energy Agency (IEA) has significantly downgraded its demand forecast for 2025, anticipating the slowest growth in five years and cautioning that global oversupply could persist until 2026. Contributing to supply worries, OPEC+ is escalating production levels, and positive developments in U.S.-Iran nuclear negotiations could lead to an increase in Iranian crude exports. Concurrently, President Trump's investigation into tariffs on critical minerals—a move that might influence relations with major suppliers such as China—could further strain ties between the two nations, heightening fears about economic growth and oil demand. Additionally, data from the American Petroleum Institute (API) revealed a 2.4 million barrel increase in U.S. crude inventories last week, contrary to predictions of a 1.68 million barrel depletion.