FX.co ★ Oil Snaps 4-Day Rally on Higher US Stockpiles

On Wednesday, West Texas Intermediate (WTI) crude oil futures declined to $63.2 per barrel, halting a four-day upward trend as traders may have capitalized on recent gains due to an unexpected increase in US crude inventories and renewed concerns over demand. Market sentiment weakened in response to the American Petroleum Institute's report of a 4.29 million barrel rise in crude stockpiles last week—the largest since March, pending confirmation by official data from the Energy Information Administration (EIA). In contrast, gasoline and distillate inventories experienced decreases of 1.4 million and 3.7 million barrels, respectively, as the summer driving season approaches.

In terms of supply, OPEC revised its forecast for non-OPEC+ output growth in 2025 to 800,000 barrels per day (bpd), down from the previous projection of 900,000 bpd, highlighting softer expectations for producers such as the United States. Additionally, OPEC+'s production only increased marginally by 25,000 bpd in April, compared to the planned 138,000 bpd rise. Nonetheless, the group is anticipated to further enhance output following its meeting on June 1.