Oil prices moved higher in Wednesday’s Asian trading session, recovering from earlier losses as OPEC+ maintained its optimistic outlook for global oil demand despite recent production increases. Meanwhile, traders reacted to a modest build in U.S. crude inventories.
By 22:17 ET (02:17 GMT), September Brent crude futures were up 0.4% at $69.01 per barrel, while September West Texas Intermediate (WTI) crude rose 0.6% to $66.94 per barrel.
The market experienced early-week volatility following a warning from U.S. President Donald Trump about a “major statement” related to Russia, triggering concerns about potential disruptions in supply. However, prices fell nearly 3% over the first two days after Trump stopped short of immediate action and instead allowed Russia a 50-day window to resolve the conflict in Ukraine.
OPEC Sees Stronger Economic Growth in Second Half, Keeps Demand Estimates Steady
OPEC’s latest monthly report reaffirmed its demand forecasts for 2025 and 2026, expressing hope that easing trade tensions will bolster economic growth in the latter half of this year.
The organization noted that recent developments suggest the possibility of trade agreements with key U.S. partners, which could reduce uncertainty in the global economy.
Despite this, oil prices remain under pressure due to concerns that President Trump’s upcoming tariff hikes, effective August 1, may accelerate inflation and slow economic growth, potentially weakening oil demand.
OPEC+ highlighted that refinery runs worldwide, especially in the United States, are expected to remain elevated to meet seasonal increases in transportation fuel demand, including gasoline, jet fuel, and residual fuels.
This comes amid ongoing OPEC+ production increases, with the latest adding 548,000 barrels per day starting in August.
U.S. Crude Stocks Edge Higher
The American Petroleum Institute’s weekly data for the period ending July 11 showed a moderate rise in U.S. crude inventories by approximately 839,000 barrels. Gasoline stocks increased by 1.93 million barrels, and distillate inventories rose by 828,000 barrels.
This follows a prior week’s significant 7.1 million barrel increase in crude stockpiles, largely due to reduced refinery throughput during seasonal maintenance.
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