FX.co ★ Oil Fluctuates on Wednesday

West Texas Intermediate (WTI) crude oil futures hovered around $66.20 per barrel on Wednesday after experiencing declines over the previous two days. Persistent concerns about potential global economic deceleration, spurred by President Trump's trade tariffs, may dampen fuel consumption. Additionally, the decision by OPEC+ to persist in augmenting oil production heightens the risk of an oversupply later in the year. However, indicators of robust summer fuel demand, notably from the United States and China due to increased travel and an improving economic outlook, offered some price support. According to the latest OPEC report, global growth is anticipated to gain momentum in the latter half of 2025, likely enhancing oil demand, with India, China, and Brazil showing strong performance and recoveries expected in the US and EU. In the United States, heightened summer driving activity and low diesel stockpiles are underpinning prices. Market participants are also looking forward to official inventory data, following an industry report that revealed a slight increase in crude stockpiles. Concurrently, a drone strike in northern Iraq compelled DNO ASA to suspend some production.