Oil prices slipped on Wednesday, extending losses from the previous session as a stronger U.S. dollar and a global market downturn weighed on investor sentiment. Traders also focused on fresh supply signals from major producers.
At 07:06 GMT, Brent crude futures were down 6 cents, or 0.09%, at $64.38 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 7 cents, or 0.12%, to $60.49. Both benchmarks remained near their lowest levels in nearly two weeks.
“The risk-off tone across markets saw investors exit energy markets,” ANZ analysts wrote in a client note.
Equity markets in Asia sank, and volatility spiked to its highest level since April after a technology-led selloff on Wall Street reignited fears of overvalued stocks.
The U.S. dollar index held firm around a three-month high, supported by signs of division among Federal Reserve policymakers, suggesting limited prospects for another rate cut this year. A stronger dollar typically dampens oil demand by raising costs for non-U.S. buyers.
“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,” said Tony Sycamore, market analyst at IG.
Adding to bearish sentiment, figures from the American Petroleum Institute indicated that U.S. crude inventories increased in the week ending October 31.
On the supply front, OPEC+ announced plans to boost output by 137,000 barrels per day in December, while opting to pause further production hikes in early 2026. However, LSEG analysts noted that the pause was “unlikely to offer meaningful support to November and December prices.”
OPEC itself lifted production by only 30,000 barrels per day in October, far short of the expected 330,000 bpd rise, as declines in Nigeria, Libya, and Venezuela offset other members’ increases.
Separately, Gunvor Group’s CEO said that Western sanctions on Russia and Iran have led to record levels of oil stored at sea, helping to prevent a global supply glut.