Oil prices declined on Wednesday, reflecting a wider selloff in global financial markets that highlighted apprehensions regarding economic and fuel demand growth. A stronger U.S. dollar, coupled with reports of increasing U.S. crude stockpiles, further contributed to these concerns. Brent crude futures experienced a decline of 36 cents, equivalent to 0.56%, settling at $64.08 per barrel as of 0221. U.S. West Texas Intermediate crude experienced a decline of 40 cents, representing a decrease of 0.66%, settling at $60.16. Both contracts continued to decline from Tuesday’s performance.

Oil markets experienced a downturn, reflecting a broader decline in equity markets. Asian stock markets continued the trend on Wednesday, following an overnight decrease, driven by concerns that stock valuations are excessive, especially for firms associated with artificial intelligence. The prevailing risk-off sentiment has resulted in an appreciation of the U.S. dollar relative to its counterparts. A stronger greenback renders dollar-denominated oil costlier for holders of alternative currencies, potentially influencing demand dynamics. “Crude oil is trading lower … as risk sentiment shifted sharply negative, boosting the safe haven U.S. dollar, both of which weighed on the crude oil price,” noted analyst Tony Sycamore.

Prices faced downward pressure as the American Petroleum Institute reported a rise in U.S. crude stockpiles by 6.52 million barrels for the week ending October 31, based on market sources referencing the API data on Tuesday. Supply-side concerns persistently exert pressure on prices. The Organization of Petroleum Exporting Countries and allied producers, known as OPEC+, reached an agreement on Sunday to raise production by 137,000 barrels per day in December.

The committee resolved to suspend additional hikes in the initial quarter of 2026. Nevertheless, the pause was deemed “unlikely to offer meaningful support to November and December prices,” according to analysts in a note. In October, OPEC’s output saw a modest increase of 30,000 bpd compared to the prior month, as the previously agreed OPEC+ increases were counterbalanced by production declines in Nigeria, Libya, and Venezuela.