FX.co ★ Oil Dips on Profit Taking

WTI crude futures dipped below $65 per barrel on Thursday, as investors decided to capitalize on recent gains following a rally that reached a three-week peak. The surge in prices earlier was largely attributed to unexpected government data revealing a decrease in US crude inventories, which caught the market off guard. This unanticipated decline heightened existing supply concerns driven by Ukraine's intensified drone attacks on Russian energy resources, leading to fuel shortages and the possibility of export restrictions. Further support stemmed from the ongoing halt of Kurdish oil exports due to unresolved debt disputes and NATO's warnings of a strong reaction to Russian airspace violations. Despite these factors, concerns about oversupply linger with the waning of peak demand season, although analysts point out that global oil demand growth is still aligning closely with expectations, despite falling slightly short of previous forecasts.