FX.co ★ Oil Extends Gains

WTI crude oil futures experienced an uptick, reaching approximately $57.5 per barrel on Wednesday. This marks continued gains from the previous day, spurred by an industry report indicating a decline in stockpiles. According to the American Petroleum Institute (API), U.S. inventories decreased by 3 million barrels last week, marking the first reduction in four weeks. Additionally, fuel stockpiles, including gasoline, saw a decline. In parallel, President Trump reiterated claims that India intends to curtail its purchases of Russian oil after conversations with Prime Minister Modi, although last week, India's foreign ministry claimed no knowledge of such discussions. Furthermore, the U.S. Energy Department plans to contribute an additional 1 million barrels to the Strategic Petroleum Reserve, potentially leading to a tighter supply in the near term. Despite these developments, oil prices remain challenged, hovering near multi-year lows due to concerns about a supply glut. Data from Vortexa highlighted a record 1.24 billion barrels of crude and condensate currently in transit globally. This follows IEA warnings about a potential record surplus in the upcoming year, as OPEC+ and other producers are set to increase output amidst slowing demand growth.