Oil prices experiences a decline due to an increase in US stockpiles and price reductions from Saudi Arabia. Oil prices saw a decline early Thursday as a result of an increase in U.S. gasoline and diesel inventories. Saudi Arabia’s choice to reduce July crude prices for Asian buyers also played a role in the decline. Brent crude futures experienced a decline of 0.3%, settling at $64.65 per barrel, whereas U.S. West Texas Intermediate crude saw a reduction of 0.5%, reaching $62.58. Brent crude futures experienced a decline of 21 cents, or 0.3%, settling at $64.65 a barrel as of 0045 GMT. U.S. West Texas Intermediate crude experienced a decline of 29 cents, equivalent to 0.5%, settling at $62.58.

Oil prices ended approximately 1% lower on Wednesday following the release of official data indicating that U.S. gasoline and distillate stockpiles increased more than anticipated, signaling diminished demand in the leading global economy. In a further indication of vulnerability, Saudi Arabia, the largest oil exporter globally, has reduced its July prices for Asian crude purchasers to levels approaching the lowest seen in four years. The price reduction implemented by Saudi Arabia, a significant oil producer within OPEC+ – the coalition of oil-producing nations that encompasses members of the Organization of the Petroleum Exporting Countries and allies like Russia – comes in the wake of the OPEC+ decision over the weekend to boost output by 411,000 barrels per day for July.

According to Reuters, the strategy employed by the leaders of the OPEC+ group, namely Saudi Arabia and Russia, is partially aimed at penalizing those who over-produce and reclaiming market share. Meanwhile, Canada readied potential reprisals, while the European Union indicated advancements in trade discussions, as the newly imposed U.S. metals tariffs caused further upheaval in the global economy and intensified the urgency of negotiations with Washington. “Uncertainty fuelled by President Trump’s shifting stance on tariffs has intensified fears of a global economic slowdown,” analyst Ole Hansen at Saxo Bank said in a note.