Global oil prices declined on Wednesday, reversing earlier gains as fresh data pointing to rising US crude inventories outweighed lingering geopolitical concerns in the Middle East.
Brent crude, the international benchmark, fell to $64.59 per barrel, representing a decline of about 0.6% from Tuesday’s close of $64.98. Meanwhile, US benchmark West Texas Intermediate (WTI) crude slipped to $60.48 per barrel, down approximately 0.57% from its previous settlement of $60.83.
Inventory Build Pressures Prices
The downward move followed a report from the American Petroleum Institute, which showed that US crude oil inventories increased by roughly 5.3 million barrels last week. The build significantly exceeded market expectations, which had forecast an increase of around 2 million barrels.
The larger-than-anticipated rise in inventories renewed concerns about demand in the United States, the world’s largest oil consumer. As a result, traders shifted their focus away from supply-side risks, exerting fresh downward pressure on prices.
Market participants are now awaiting official inventory figures from the US Energy Information Administration, scheduled for release later on Wednesday, for confirmation of crude supply trends.
Geopolitics Offer Limited Support
Earlier in the week, oil prices had gained support from heightened geopolitical tensions linked to developments in Iran. Investors closely monitored statements from Washington amid fears that escalating tensions could disrupt oil supplies from the region.
US President Donald Trump warned on Tuesday that the United States was prepared to take “very strong action” if reports of planned executions of protesters in Iran were confirmed. He also urged anti-government demonstrators in Iran to continue their protests, signalling increased pressure on Tehran.
In addition, Trump threatened to impose tariffs on countries maintaining trade ties with Iran, a move aimed at further isolating the regime and reinforcing geopolitical risk premiums in energy markets.
Oversupply Concerns Limit Upside
Despite these tensions, expectations that global oil supply will continue to outpace demand have capped price gains. Analysts note that projections pointing to persistent oversupply are strengthening bearish sentiment, limiting the market’s ability to sustain rallies even amid geopolitical uncertainty.
