Oil prices bounced back during Wednesday’s Asian trading session, recovering from losses seen earlier in the week. This uptick came as OPEC+ upheld its positive global demand projections despite boosting production levels, while traders processed a slight increase in U.S. crude stockpiles.
By 22:17 ET (02:17 GMT), September Brent crude futures edged up 0.4% to $69.01 per barrel. Meanwhile, West Texas Intermediate (WTI) crude for September delivery rose 0.6%, settling at $66.94 per barrel.
Earlier volatility this week was driven by U.S. President Donald Trump’s alert about a forthcoming “major statement” concerning Russia, sparking worries over possible supply interruptions. Yet, oil prices dropped nearly 3% across the first two trading days after Trump paused on immediate action, instead granting Russia a 50-day timeframe to resolve the Ukraine conflict.
OPEC Maintains Demand Forecast, Anticipates Stronger Growth in Second Half
OPEC released its monthly report reaffirming its demand outlook for 2025 and 2026, expressing confidence that easing trade tensions could support better-than-expected economic growth in the latter half of the year.
The cartel highlighted that recent developments suggest potential agreements with key U.S. trading partners may be reached, which could further reduce global economic uncertainties.
Despite the positive outlook, oil markets face downward pressure linked to concerns over President Trump’s planned tariff hikes set for August 1, which might accelerate inflation and dampen economic expansion, ultimately weakening oil demand.
OPEC+ also pointed out that refinery activity worldwide—especially in the U.S.—is expected to remain robust to meet the seasonal rise in transportation fuel needs, including gasoline, jet fuel, and residual fuels.
This outlook comes as the group continues to increase output, with the latest adjustment adding 548,000 barrels per day starting in August.
U.S. Crude Inventories See Slight Uptick
According to the American Petroleum Institute’s weekly report ending July 11, U.S. crude stockpiles rose modestly by about 839,000 barrels. Gasoline inventories climbed by 1.93 million barrels, while distillate supplies increased by 828,000 barrels.
The prior week had witnessed a more significant crude build of 7.1 million barrels, primarily attributed to reduced refinery throughput during seasonal maintenance shutdowns.
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