FX.co ★ Oil Steadies Ahead OPEC Meeting

On Wednesday, West Texas Intermediate (WTI) crude oil futures remained around $65.50 per barrel as investors proceeded with caution in anticipation of OPEC+'s decision regarding production. The group plans to increase output by 411,000 barrels per day (bpd) in August, which will contribute to a cumulative rise of 1.78 million bpd in 2025—equivalent to more than 1.5% of global oil demand. This strategy is perceived as a measure against overproducers, as well as an effort by Saudi Arabia to reclaim market share from U.S. shale producers and others. Concurrently, an industry report indicated an unexpected growth in U.S. crude inventories. The Energy Information Administration (EIA) disclosed a 3.845 million-barrel increase last week, marking a deviation from five consecutive weeks of declines and opposing forecasts of a 2 million-barrel reduction. Meanwhile, with the ongoing ceasefire between Israel and Iran, geopolitical tensions have lessened, diminishing the risk premium on oil. Nevertheless, the broader global outlook remains uncertain, particularly concerning possible new U.S. tariffs following the looming July 9 deadline, which continues to exert downward pressure on prices.