Oil Prices Fall on Raised Forecasts
Petroleum prices subsided on Wednesday after the International Energy Agency noted supply overtaking demand this year, while investors awaited Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Brent crude futures fell 45 cents, or 0.7%, to $65.67 U.S. a barrel, while U.S. West Texas Intermediate crude futures edged down 53 cents, or 0.8% at $62.64.
Both contracts settled lower on Tuesday.
Trump and Putin are due to meet in Alaska on Friday to discuss ending Russia’s war in Ukraine, which has shaken oil markets since February 2022.
The IEA on Wednesday raised its forecast for oil supply growth this year following OPEC+’s decision but lowered its demand forecast due to lackluster demand across the major economies.
Long-term support, however, came from the Organization of the Petroleum Exporting Countries' updated monthly report on global supply and demand, one observer said, which raised its global oil demand forecast for next year and trimmed its estimate for growth in supply from the United States and other producers outside the wider OPEC+ group, pointing to a tighter market.
Investors also awaited further cues after an industry report showed U.S. crude stockpiles climbed last week.
Crude inventories in the United States, the world’s biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly.
Analysts polled by Reuters expect today’s EIA report to show crude inventories fell by about 300,000 barrels last week.
