FX.co ★ Brent Extends Losses

Brent crude oil futures continued their downward trend, approaching $70 per barrel on Wednesday. This decline is largely attributed to the likelihood of increased Russian oil supply, following President Putin's decision to cease attacks on Ukrainian energy infrastructure while dismissing a 30-day ceasefire proposal. The possibility of easing Russian sanctions further exacerbates concerns of an oversupply, especially as OPEC and its allies are set to increase production in the coming month. Additional risks come from shifts in global trade, which could impede economic growth and reduce consumption. Indications of waning demand have emerged, highlighted by industry reports revealing a larger-than-anticipated rise in crude inventories last week. Nonetheless, escalating violence in the Middle East, which poses risks of supply disruptions in key oil-producing areas, has helped to mitigate some of these losses.