Oil markets hovered near two-month lows in Asian trading on Wednesday as investors awaited a high-profile meeting between U.S. President Donald Trump and Russian President Vladimir Putin later this week.
Attention also turned to U.S. crude stockpiles, after industry figures revealed an unexpected increase in inventories in the world’s largest oil-consuming nation.
Crude showed little reaction to slightly weaker-than-expected U.S. consumer inflation data, which left market expectations largely unchanged for a Federal Reserve rate cut in September.
Brent crude for October delivery held steady at $66.13 a barrel, while West Texas Intermediate (WTI) futures dipped 0.1% to $62.41 per barrel by 21:39 ET (01:39 GMT).
U.S. inventories rise unexpectedly, API data shows
According to the American Petroleum Institute (API), U.S. crude stocks climbed by 1.5 million barrels in the week ending August 8, in contrast to forecasts for a 0.8 million barrel draw.
Such API readings often signal the trends that official data will later confirm, and this increase fueled concerns that U.S. fuel demand may be softening as the busy summer travel season winds down.
The U.S. Energy Information Administration (EIA) is scheduled to release its weekly inventory report later Wednesday, with analysts anticipating a modest draw of 300,000 barrels.
Both the EIA and OPEC, in their separate monthly reports, projected higher oil output in the months ahead—a factor weighing on prices this week. OPEC also slightly raised its forecast for global oil demand in 2026.
Rising supply and muted demand have weighed on crude prices throughout 2025, and looming U.S. sanctions against Russia have done little to arrest the decline.
Trump-Putin summit in focus
U.S. President Trump and Russian President Putin are set to meet in Alaska on Friday to discuss ways to end the conflict in Ukraine.
The summit comes amid Washington’s threats of stricter sanctions on Russia’s energy sector, including potential tariffs targeting major buyers such as India and China. Trump had previously proposed a 50% tariff on Indian oil imports.
The White House on Tuesday tempered expectations for a rapid resolution to the Ukraine conflict, signaling the possibility of protracted ceasefire negotiations and additional restrictions on Russian crude in the coming weeks.
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