Oil prices fell just over 1% on Wednesday after U.S. data showed a sharp increase in gasoline and diesel inventories, raising concerns about weakening demand. Brent crude settled down 77 cents at $64.86 a barrel, while U.S. West Texas Intermediate dropped 56 cents to $62.85.
According to the Energy Information Administration, gasoline stocks surged by 5.2 million barrels and distillates rose by 4.2 million—well above expectations. While crude inventories fell by 4.3 million barrels, analysts saw the refined product builds as bearish, suggesting strong supply post-Memorial Day wasn’t matched by demand.
OPEC+ plans to increase output by 411,000 barrels per day in July, adding to market concerns about a potential supply glut. Russia, facing a 35% drop in May oil and gas revenue, may be less inclined to support additional hikes, though it remains aligned with the group’s current strategy.
Global economic worries also pressured prices. The OECD cut its global growth forecast amid rising trade tensions, especially between the U.S. and China. President Trump is expected to speak with Chinese leader Xi Jinping this week, following accusations that Beijing violated prior trade agreements.
In Canada, some oil production is restarting after wildfire disruptions. Canadian Natural Resources resumed operations at its Jackfish 1 oil sands site as fire risks eased. Earlier this week, wildfires had shut in about 344,000 barrels per day of output.