Oil prices declined on Wednesday as traders anticipated a potential rise in U.S. crude inventories and digested OPEC’s revised supply forecast.
Brent crude futures slipped 75 cents, or around 1.1%, to $65.88 a barrel, while U.S. West Texas Intermediate crude fell 75 cents, or 1.2%, to $62.92.
OPEC trimmed its projection for oil supply growth from producers outside the OPEC+ coalition, forecasting an 800,000 barrels per day increase in 2025, down from its previous estimate of 900,000 bpd. The adjustment reflects lower capital investment expectations in response to falling oil prices.
Market data from the American Petroleum Institute indicated a 4.3 million barrel rise in U.S. crude stocks for the week ending May 9. However, gasoline inventories dropped by 1.4 million barrels and distillate stocks fell by 3.7 million barrels, signaling stronger product demand ahead of the summer driving season in the Northern Hemisphere.
Despite the build in crude supplies, product draws suggested a tighter market, with traders awaiting official data from the U.S. Energy Information Administration due later in the day.
Oil prices remained near two-week highs reached in the previous session, but gains were capped by ongoing demand concerns. While recent rallies prompted some profit-taking, questions about economic momentum and the effect of rising U.S. tariffs kept sentiment cautious.
Chicago Federal Reserve President Austan Goolsbee noted that April’s moderate inflation data might not fully capture the impact of recent trade policy changes, highlighting the need for additional indicators to assess economic direction.
