FX.co ★ Oil Falls to Over 2-Month Low

WTI crude oil futures have fallen to $62.7 per barrel, marking a two-month low, following a forecast from the International Energy Agency predicting an escalating oil surplus this year and the next. Inventory levels are expected to climb at an unprecedented pace, reaching a 46-month high by June 2026, supporting a similar outlook from the US government. This year is anticipated to be the peak of US oil production, with a decline forecast for the following year, driven by enhanced efficiency at existing wells. Concurrently, a US industry report indicated a slight uptick in stockpiles last week, with official figures to be released later today. Additionally, market participants are closely monitoring the forthcoming US-Russia summit in Alaska on Friday, intended to discuss a resolution to the Ukraine conflict. Ukrainian President Zelenskiy has dismissed the idea of ceding the Donbas region to Russia—a condition imposed by Putin—and is advocating for Kyiv's participation in the talks, which might affect the consideration of easing US sanctions on Russian oil.