FX.co ★ Brent Holds Losses

On Thursday, Brent crude oil futures dropped to below $65 per barrel, maintaining losses from the prior session due to escalating concerns of a global oil surplus. Saudi Arabia, a principal oil producer, is advocating for a substantial increase in OPEC+ production—at least 411,000 barrels per day in August and potentially in September—in an effort to secure market share during the peak summer demand season. The kingdom also reduced its July crude prices for Asian customers to levels not seen in nearly four years, indicating weaker demand from that region. Despite official U.S. data indicating a reduction in crude inventories, there was a larger-than-expected increase in gasoline and distillate stockpiles last week, further pressuring prices. Additionally, investors are wary about the wider economic repercussions of the ongoing trade war, as Canada readied potential retaliatory actions and President Trump deemed Chinese President Xi Jinping especially tough in negotiations.