FX.co ★ Oil Pares Gains After Tuesday Rebound

West Texas Intermediate (WTI) crude oil steadied around $59 per barrel, regaining ground after a 3.4% rebound the previous day. Market participants are keenly awaiting the release of the official U.S. stockpile figures, with predictions suggesting an 800,000-barrel reduction following a more substantial-than-anticipated drop of 4.5 million barrels reported by the American Petroleum Institute (API). The oil market is experiencing persistent pressure following the announcement by OPEC+ to expedite production increases, fueling concerns about oversupply at a time when U.S. tariffs have adversely impacted the global demand outlook. Although prices recently plunged to their lowest in four years, there are indications of a possible correction in supply. Several U.S. producers, such as Diamondback Energy and Coterra Energy, are curbing drilling activities, a move analysts suggest could tighten supply and potentially elevate prices over time. Concurrently, the market's attention is also on the Federal Reserve's interest rate decision, with prevailing expectations that rates will remain unchanged amid rising economic uncertainty related to ongoing trade tensions.