Oil prices exhibited minimal fluctuations on Wednesday, following a decline in the preceding session. This movement was influenced by an industry report indicating an increase in U.S. crude stockpiles last week, suggesting that the conclusion of the seasonal summer demand period is approaching. Brent crude futures experienced a modest increase of 3 cents, reaching 66.15 a barrel at 0102 GMT, following a decline of 0.8% in the preceding session. U.S. West Texas Intermediate crude futures experienced a decrease of 3 cents, settling at $63.14, following a decline of 1.2%.

Crude inventories in the U.S., recognized as the largest oil consumer globally, experienced an increase of 1.52 million barrels last week, according to market sources referencing figures from the American Petroleum Institute on Tuesday. Gasoline inventories experienced a decline, whereas distillate inventories saw a modest increase. Should the U.S. Energy Information Administration data set for release later on Wednesday also show a decline, it may suggest that consumption during the summer driving season has reached its zenith, prompting refiners to scale back their operations. The demand season generally spans from the Memorial Day holiday at the conclusion of May to the Labor Day holiday in early September.

According to analysts surveyed by Reuters, the forthcoming EIA report is anticipated to indicate a decline in crude inventories by approximately 300,000 barrels for the previous week. Projections released by OPEC and the EIA on Tuesday indicated a rise in production for this year, which subsequently exerted downward pressure on prices. However, both anticipate a decrease in output in the U.S., the leading producer globally, by 2026, while other regions are projected to enhance their oil and natural gas production.

The EIA’s monthly report indicates that U.S. crude production is projected to reach a historic high of 13.41 million barrels per day by 2025, driven by enhancements in well productivity. However, it also anticipates a decline in output in 2026 as a result of decreasing oil prices. The monthly report from the Organization of the Petroleum Exporting Countries indicates that global oil demand is projected to increase by 1.38 million barrels per day in 2026, reflecting an upward revision of 100,000 barrels per day from earlier estimates. The projection for 2025 remains unchanged.

The White House on Tuesday moderated the outlook for a swift ceasefire agreement between Russia and Ukraine, potentially prompting investors to reassess the timeline for the conclusion of the conflict and the likelihood of any relaxation of sanctions on Russian supplies, which had been bolstering prices. U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to convene in Alaska on Friday to deliberate on the cessation of hostilities. “Trump downplayed expectations of his meeting with President Putin …” Nonetheless, the anticipation surrounding further sanctions on Russian crude appears to be diminishing,” noted ANZ senior commodity strategist Daniel Hynes in a recent communication.