FX.co ★ Oil Eases on Thursday

WTI crude oil futures fell below $64.50 per barrel on Thursday, pulling back after a 1% gain in the previous session, as persistent oversupply outweighed ongoing geopolitical risks linked to Iran. Markets remain focused on tensions around Iran, with the US signaling a preference for reviving a nuclear deal while keeping military options on the table and deploying naval forces in the region, maintaining uncertainty over potential supply disruptions. Even so, abundant supply continues to cap prices. The IEA reported that global oil inventories increased last year at the fastest pace since 2020 and forecasts a sizeable surplus in 2026 as supply outstrips demand. Rising stockpiles are reinforcing expectations of an oversupplied market. Meanwhile, flows from Venezuela are recovering as China purchases cargoes previously associated with the US.