FX.co ★ Oil Rises for 3rd Session

West Texas Intermediate (WTI) crude futures rose by over 2% to around $64 per barrel on Wednesday, securing a third consecutive day of gains. This upward movement reflects traders' efforts to balance geopolitical factors with economic indicators. Initially, prices were supported by an unexpected decline in U.S. producer prices, which raised expectations for Federal Reserve rate cuts that could stimulate demand. Market momentum increased when President Trump expressed concerns on social media regarding Russia's drone activities in Polish airspace. This speculation led to short-covering amid rumors that Trump might soon focus on Russian energy exports. Reports have also indicated that Trump has urged the European Union to collaborate with him in implementing tariffs on China and India, key Russian oil purchasers, as a strategy to compel Moscow into negotiations. Additionally, geopolitical tensions resurfaced after Israel's attack on Hamas leaders in Qatar, further adding a risk premium to the market. Nevertheless, these gains were tempered by U.S. government data revealing a more significant-than-anticipated crude inventory build of 3.9 million barrels, coupled with higher product stocks. This data underscores diminishing summer demand and ongoing supply-side challenges.