Oil hovered near two-month lows in Asian trading on Wednesday as investors braced for a high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin scheduled for later this week.
Markets also focused on U.S. crude stockpiles after industry data revealed a surprising rise in inventories in the world’s largest oil consumer.
Crude prices were largely unaffected by slightly softer-than-expected U.S. consumer inflation figures, which left expectations for a September Federal Reserve rate cut largely intact.
October Brent futures held at $66.13 per barrel, while West Texas Intermediate (WTI) crude slipped 0.1% to $62.41 a barrel by 21:39 ET (01:39 GMT).
Unexpected inventory build in the U.S.
The American Petroleum Institute (API) reported a 1.5 million barrel increase in U.S. crude stocks for the week ending August 8, defying forecasts for a 0.8 million barrel draw.
API data often foreshadows official figures and raised concerns that U.S. fuel demand may be softening as the summer travel season winds down.
The U.S. Energy Information Administration (EIA) will release its official weekly inventory report later Wednesday, with analysts predicting a modest 300,000-barrel draw.
Both the EIA and OPEC, in their separate monthly updates, forecast higher oil production in the coming months. OPEC also slightly raised its 2026 oil demand projection, adding pressure to prices this week.
Rising production alongside sluggish demand has weighed on crude this year, and potential U.S. sanctions on Russia’s energy sector have done little to support prices.
Trump-Putin talks in the spotlight
The Alaska summit between Trump and Putin is aimed at exploring ways to end the war in Ukraine.
Washington has also warned of tougher sanctions on Russian oil, targeting major buyers such as India and China. Trump had previously floated a 50% tariff on Indian crude imports.
The White House tempered expectations for an immediate resolution on Tuesday, hinting that ceasefire negotiations could be prolonged and that additional measures against Russian crude might be forthcoming.
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