FX.co ★ Oil Holds Decline

On Wednesday, West Texas Intermediate (WTI) crude oil futures stabilized around $63 per barrel, maintaining a decline of over 2% from the previous trading session. This comes as investors evaluate uncertainties caused by geopolitical tensions and trade disputes. Market attention remains focused on the escalating conflict between Russia and Ukraine, as both nations intensify attacks on each other's energy infrastructures. Concurrently, the United States plans to increase tariffs on certain Indian exports to 50% today, due to India's oil trade with Russia. However, analysts indicate that supply concerns are limited since India has not ceased imports of Russian crude, and its refineries intend to continue with most of their purchases. Additionally, investors are closely observing broader market uncertainties related to the Federal Reserve’s autonomy. Recent data from the American Petroleum Institute (API) revealed that U.S. crude inventories decreased by approximately 1 million barrels last week, which was less than the anticipated 1.7 million barrel drop.