FX.co ★ Oil Falls on Higher US Stockpiles

West Texas Intermediate (WTI) crude oil futures declined, reaching approximately $61 per barrel on Thursday. This downturn continues the trajectory from the previous day as concerns about oversupply exert pressure on the market, exacerbated by increasing US crude reserves. According to the Energy Information Administration (EIA), there was a rise of 1.328 million barrels in crude inventories last week, contrary to expectations of a 1.85 million barrel decrease. Moreover, stocks of gasoline and distillates also increased, which was against anticipated reductions. The decline in oil prices was further influenced by a widespread sell-off in financial markets, stemming from apprehensions over the escalating US deficit. In parallel, investors are attentively observing geopolitical developments in anticipation of the fifth round of nuclear discussions between the US and Iran this weekend. These talks have mitigated concerns surrounding possible supply interruptions in the Middle East, following reports on Wednesday regarding potential Israeli military actions against Iranian nuclear sites.