FX.co ★ Oil Fluctuates on Wednesday

On Wednesday, West Texas Intermediate (WTI) crude oil futures experienced minor fluctuations, hovering around $67.8 per barrel, following two days of upward movement. Market participants remained cautious amid concerns over potential widespread trade disruptions, fueled by President Trump's proposal of a 50% tariff on copper, which could potentially slow oil demand. Additionally, the OPEC+ alliance is preparing to increase output again in September, building on the recently sanctioned augmentation of 548,000 barrels per day for August. Nonetheless, UAE Energy Minister Suhail Al Mazrouei indicated that the absence of significant inventory accumulation suggests that these additional barrels are indeed necessary for the market. Furthermore, Saudi Aramco projects a global oil demand increase of 1.2 to 1.3 million barrels per day in the latter half of 2025. Amid rising tensions in the Red Sea, Houthi-associated attacks have recommenced, resulting in the sinking of a vessel and the loss of several crew members. In the United States, data from the American Petroleum Institute (API) revealed that crude inventories expanded by 7.1 million barrels last week, marking the most substantial rise since January. The Energy Information Administration (EIA) also adjusted its 2025 US production forecast downward, attributing this change to reduced oil prices leading to a slowdown in drilling activities.