Oil prices moved slightly lower on Wednesday, pressured by a broader selloff in global financial markets and a stronger U.S. dollar, while traders evaluated the latest supply developments.
By 07:06 GMT, Brent crude futures were down 6 cents, or 0.09%, at $64.38 per barrel after hitting a near two-week low in the previous session. U.S. West Texas Intermediate (WTI) crude slipped 7 cents, or 0.12%, to $60.49 per barrel.
“The risk-off tone across markets saw investors exit energy markets,” ANZ analysts wrote in a Wednesday note.
Asian equities tumbled sharply, and volatility reached its highest level since April following a tech-driven selloff on Wall Street, which renewed concerns about inflated valuations.
The U.S. dollar index — which tracks the greenback against six major peers — remained firm at a three-month high, supported by divisions among Federal Reserve officials that signaled low odds of an interest rate cut in December.
A stronger dollar typically weighs on oil demand by making dollar-priced crude more expensive for buyers using other currencies. “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.
Additional pressure came after data from the American Petroleum Institute showed a rise in U.S. crude inventories for the week ended October 31.
On the supply side, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed on Sunday to raise production by 137,000 barrels per day in December. The group also decided to halt further output hikes in the first quarter of 2026. However, the pause was “unlikely to offer meaningful support to November and December prices,” according to LSEG analysts.
OPEC’s own output rose by just 30,000 barrels per day in October, well below the planned 330,000 bpd increase, as gains were offset by declines in Nigeria, Libya, and Venezuela.
Meanwhile, Western sanctions on Russia and Iran are driving record volumes of oil into floating storage, preventing an oversupply from building up in global markets, the CEO of Switzerland-based trader Gunvor Group said Wednesday.
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