FX.co ★ Oil Rises Toward 4-Week High

WTI crude oil futures surged to $69.9 per barrel on Wednesday, marking their highest level in almost four weeks. This increase is fueled by worries about a tightening global supply. The United States issued a threat of imposing 25% tariffs on nations purchasing Venezuelan crude, which could disrupt trade, particularly with China, Venezuela's largest buyer. This move comes in the wake of recent U.S. sanctions aimed at curbing Iranian oil sales, although there is speculation that Saudi Arabia might boost production to make up for any shortfall from Iran. Moreover, data revealed that U.S. crude inventories dropped by 3.34 million barrels last week, significantly surpassing expectations, indicating robust demand. Meanwhile, the U.S. has brokered agreements with Ukraine and Russia to reduce conflicts affecting energy infrastructure, though apprehensions about an economic slowdown driven by ongoing trade tensions remain.