FX.co ★ Brent Extends Losses

Brent crude oil futures dipped below $67 per barrel on Thursday, extending the downturn seen in the prior session. This movement in the market comes as traders evaluate the latest US stockpile reports alongside the Federal Reserve's recent decision to reduce interest rates. According to the Energy Information Administration (EIA), crude oil inventories decreased by 9.3 million barrels last week, primarily due to a notable increase in exports. Despite this decline, a rise in the adjustment factor and an increase in distillate stocks to their highest level since January cast a bearish shadow over the report. Concurrently, the US Federal Reserve reduced interest rates by a quarter of a percentage point as anticipated, hinting at further cuts intended to bolster a weakening job market. However, this dovish shift also raises concerns, as it may signal escalating economic risks for a crucial oil-consuming nation. Additionally, investors remain attentive to the situation regarding Russian oil supply, following Ukraine's intensified attacks on energy infrastructure. While reports emerged suggesting Transneft had cautioned about potential production cuts, the company later refuted these claims, labeling them as misinformation.