FX.co ★ Oil Drops for Third Day

On Wednesday, WTI crude oil futures declined towards the $60 per barrel mark, marking a decrease for the third consecutive session and settling near a two-week low. This decline is largely attributed to uncertainties surrounding shifting global policies, which continue to affect the demand outlook. Oil is currently on track to suffer a monthly loss exceeding 15%, the steepest since November 2021. The unpredictable tariff decisions by the United States have intensified fears of a global economic slow-down, with the ongoing tit-for-tat tariff exchanges between the US and China exacerbating the trade tensions between the world's two largest oil consumers. Additionally, market sentiment has been further dampened by a sharp decline in US consumer confidence, indicating mounting economic pressures. During its meeting on May 5, OPEC+ may also consider hastening its planned production increases. Data from the American Petroleum Institute (API) revealed a rise in US crude inventories by 3.76 million barrels last week, significantly exceeding the expected increase of 390 thousand barrels.