FX.co ★ Oil Holds Two-Day Drop

WTI crude oil futures remained around $58 per barrel on Wednesday, maintaining most of their two-day decline. This performance comes amid ongoing concerns about excessive global supply impacting prices. Market participants are now anticipating key reports from the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) later this week, which are expected to provide more definitive market insights. U.S. energy officials have forecasted that domestic oil production will reach a record 13.6 million barrels per day this year, contributing to the already oversupplied global market. Investors are also monitoring diplomatic efforts aimed at resolving the Russia-Ukraine conflict, potentially reducing the geopolitical risk premium. In parallel, data from the American Petroleum Institute (API) indicated a decrease of 4.8 million barrels in U.S. crude inventories last week, while gasoline and distillate stocks increased significantly. Additionally, markets are keenly awaiting the Federal Reserve's decision, where an anticipated 25 basis points rate cut could bolster fuel demand in the coming year.