Select Language

WTI Crude Oil extends gains as Canada wildfires, geopolitical tensions, and a broadly weaker US Dollar support prices

Breaking news

WTI Crude Oil extends gains as Canada wildfires, geopolitical tensions, and a broadly weaker US Dollar support prices

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.04 02:37
WTI Crude Oil extends gains as Canada wildfires, geopolitical tensions, and a broadly weaker US Dollar support prices

update 2025.06.04 02:37

  • WTI Crude Oil trades near $63.06, up nearly 2% intraday on Tuesday.
  • Canadian wildfires disrupt 350,000 barrels per day of oil output, fueling supply concerns.
  • The escalating Russia-Ukraine conflict and stalled Iran-US talks are keeping the Oil market tight.

West Texas Intermediate (WTI) Crude Oil prices continue their upward trajectory on Tuesday, marking the second day of gains. At the time of writing, WTI is hovering near Monday's high, trading around $63.06 per barrel, reflecting a nearly 2% increase on the day. The rally reflects a mix of Canadian production disruptions, mounting geopolitical tensions, and a softer US Dollar (USD), all of which are providing a favorable backdrop for Crude bulls.

Wildfires in Alberta have shut down close to 350,000 barrels per day of Oil production, equivalent to around 7% of the province's total output. While not a massive hit to global supply, the disruption is significant enough to add fuel to the ongoing Oil price rally. The temporary closures, prompted by safety concerns near key Oil Sands sites, come at a time when markets are already on edge over geopolitical tensions.

The ongoing conflict between Russia and Ukraine has intensified with recent drone attacks on Russian airfields, followed by retaliatory strikes on Kyiv. These developments have reignited fears of potential disruptions to Russian Oil infrastructure. On Monday, Russia and Ukraine held their second round of direct peace talks following a sharp escalation in hostilities the previous day, but the discussions ended without significant progress.

Meanwhile, mixed signals from Iran-US nuclear negotiations have also kept market participants on edge. An Iranian diplomat indicated that Tehran is poised to reject a US proposal aimed at resolving the decades-old nuclear standoff. Although the fifth round of talks in Rome last month yielded some progress, the outlook remains uncertain, limiting the potential return of sanctioned Iranian barrels to global markets.

Adding to the bullish tone, a broadly weaker US Dollar is helping to lift commodity prices across the board. A softer Greenback makes US Dollar-denominated assets, such as Crude Oil, more affordable for foreign buyers, thereby increasing demand and further supporting WTI prices in the near term.



Date

Created

 : 2025.06.04

Update

Last updated

 : 2025.06.04

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD climbs to six-week high as ECB cuts interest rates, US Jobless Claims disappoint

The Euro (EUR) edges higher against the US Dollar (USD) on Thursday, following choppy price action, as traders react to the European Central Bank's (ECB) widely expected interest rate cut and disappointing US Initial Jobless Claims, which weigh on the Greenback.
New
update2025.06.05 23:15

GBP/USD advances to multi-year highs above 1.3600 on renewed USD weakness

GBP/USD gained traction in the American session on Thursday and climbed to its highest level since February 2022 above 1.3600. At the time of press, the pair was up 0.4% on the day at 1.3605.
New
update2025.06.05 23:02

Lagarde speech: Facing significant uncertainty

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to lower key rates by 25 basis points at the June policy meeting and responds to questions from the press.
New
update2025.06.05 22:23

Lagarde speech: We are in a good place after 25 bps rate cut today

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to lower key rates by 25 basis points at the June policy meeting and responds to questions from the press.
New
update2025.06.05 22:13

Lagarde speech: Survey data point to some weaker prospects in near term

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to lower key rates by 25 basis points at the June policy meeting and responds to questions from the press.
New
update2025.06.05 21:58

US President Trump and Chinese President Xi hold phone call - Xinhua

According to Xinhua news agency, United States (USD) President Donald Trump and Chinese President Xi Jinping held a phone call on Trump's request to engage in discussions and reflect ongoing diplomatic communication amidst tensions.
New
update2025.06.05 21:55

US weekly Initial Jobless Claims rise to 247K vs. 235K expected

There were 247,000 initial jobless claims in the week ending May 31, according to data published Thursday by the United States (US) Department of Labor (DOL). This figure followed the previous week's print of 239,000 (revised from 240,000) and came in worse than the market expectation of 235,000.
New
update2025.06.05 21:37

USD/INR pulls back from 86.00 as the US Dollar softens, RBI rate decision in focus

The Indian Rupee (INR) strengthens modestly against the US Dollar (USD) on Thursday, ending a two-day losing streak as the Greenback softened following Wednesday's weaker-than-expected US economic data.
New
update2025.06.05 21:28

Gold extends gains ahead of ECB rate decision, US Jobless Claims, and trade talks

Gold (XAU/USD) extends its upward move during the European session on Thursday, with markets focusing on the European Central Bank (ECB) decision, US employment data, and developments surrounding trade talks ahead of US President Donald Trump's meeting with German Chancellor Friedrich Mertz. 
New
update2025.06.05 21:22

USD/CAD dips to test YTD lows at 1.3650 amid generalised Dollar weakness

The US Dollar's recovery has been short-lived.
New
update2025.06.05 20:45

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel