FX.co ★ Brent Drops for Third Day

Brent crude oil futures declined to approximately $63 per barrel on Wednesday, marking the third successive session of decline and settling near a two-week low. This downturn is attributed to ongoing uncertainties surrounding global policy shifts, which continue to adversely impact the demand outlook. Furthermore, oil is on track to register a monthly decrease exceeding 15%, which would represent its most significant drop since November 2021. Erratic tariff actions from the United States have exacerbated fears of a looming global economic downturn, particularly amid the persistent retaliatory tariff exchanges between the US and China, sparking tensions between the world's two largest oil consumers. Adding to the negative market sentiment, a substantial decline in US consumer confidence highlights growing economic pressures. Meanwhile, OPEC+ is contemplating the possibility of expediting their planned production increases during their meeting on May 5. Additionally, data from the American Petroleum Institute indicated a substantial rise in US crude inventories, with an increase of 3.76 million barrels last week, significantly surpassing the projected build of 390,000 barrels.