Oil prices dipped on Wednesday after the International Energy Agency (IEA) raised its supply forecast, while investors awaited Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Brent crude futures fell 45 cents (0.7%) to $65.67 per barrel, and U.S. West Texas Intermediate (WTI) declined 53 cents (0.8%) to $62.64. Both contracts had settled lower on Tuesday, News.Az reports, citing Reuters.
The IEA cited a supply growth outpacing demand this year following OPEC+ decisions, while revising down its demand forecast due to weak consumption across major economies. Long-term support came from OPEC’s updated report, which raised its global oil demand projection for next year while trimming growth expectations for U.S. and non-OPEC+ producers, signaling a tighter market.
Investors are closely watching Friday’s Alaska summit between Trump and Putin to discuss ending Russia’s war in Ukraine, which has disrupted oil markets since February 2022. Analysts expect the summit to avoid additional sanctions on Russia, allowing continued oil flows to southern and eastern markets.
U.S. crude inventories also rose 1.52 million barrels last week, according to American Petroleum Institute data, while gasoline stocks dropped and distillate inventories increased slightly. Analysts anticipate the Energy Information Administration (EIA) report to show a modest crude draw of about 300,000 barrels.
The EIA’s Short Term Energy Outlook forecast Brent prices averaging below $60 per barrel in the fourth quarter, a level not seen since 2020, as global oil supply growth outpaces demand.
