At 10:49 GMT, Light Crude Oil Futures are trading $62.68, down $0.49 or -0.78%.
IEA Raises Supply Forecast, Weighs on Oil Prices
Adding to the downside pressure, the International Energy Agency (IEA) revised its supply forecast upward on Wednesday, citing increased output from OPEC+ producers.
At the same time, the agency trimmed its global oil demand outlook, pointing to sluggish consumption across major economies. This rebalancing of the supply-demand equation tilted sentiment bearish, with traders now pricing in weaker fundamentals through the rest of the year.
Geopolitical Watch: Traders Await U.S.-Russia Talks
Markets are also closely watching the upcoming meeting between U.S. President Joe Biden and Russian President Vladimir Putin, scheduled for Friday in Alaska. While the summit will focus on the war in Ukraine, analysts expect no additional sanctions on Russian oil.
According to PVM Oil’s Tamas Varga, this has contributed to the softening in crude prices, as uninterrupted Russian exports continue to flow into southern and eastern markets.
U.S. Inventory Data Sends Mixed Signals
The latest American Petroleum Institute (API) data showed a 1.52 million barrel build in U.S. crude inventories last week, reinforcing supply-side concerns. Gasoline stockpiles declined, while distillates posted a slight gain.
