WASHINGTON (dpa-AFX) - Crude oil prices fell on Wednesday after the forecast by the Paris-based International Energy Agency projected oversupply in the market this year due to surging supply from OPEC+ and non-OPEC+ oil producers.
Today, WTI Crude Oil for September delivery was last seen down by $0.55 (or 0.87%) at $62.62 per barrel.
Data released by the American Petroleum Institute revealed that US crude oil inventories rose by 1.5 million barrels in the week ending August 8.
A separate report released by the Energy Information Administration today showed that US crude oil inventories rose by 3.037 million barrels in the week ending August 8.
Gasoline inventories fell by 0.792 million barrels, while distillate fuel inventories increased by 714,000 barrels. Net US crude imports rose by 699,000 barrels per day.
The build brings commercial stockpiles to 426.7 million barrels.
Supply side concerns linger as the US President Trump has intensified pressure on countries purchasing oil from Russia. Trump's plans affect mainly India and China.
Slapped with 50% tariffs, to avoid further US conflict, India is reportedly now looking to increase reliance on West Asian suppliers as a means to diversify its energy sources.
A US-Russia summit in Alaska on Friday could influence potential easing of US sanctions on Russian oil.
Meanwhile, in its monthly Oil Market Report, the International Energy Agency stated that the oil market could be more oversupplied than expected by the end of this year amid bland demand growth versus surging supply from both OPEC+ and non-OPEC+ producers.
Demand is now expected to rise by just 680,000 barrels per day this year and by 700,000 bpd in 2026 to reach 104.4 million bpd next year.
On the supply front, the Paris-based agency hiked its global supply growth forecast by 370,000 bpd to 2.5 million bpd in 2025 after the eight OPEC+ members agreed earlier in August to boost output by 547,000 bpd in September.
In the US, based on the inflation data released today and last week's weak jobs number, markets are betting heavily on an interest rate cut by the US Fed in September.
Analysts feel that Fed's decision in the coming weeks could impact the value of US Dollar as well as oil prices, as crude oil is a dollar-denominated commodity.
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