Oil prices slipped more than 1% on Wednesday, settling at two-week lows as growing concerns over a potential global supply glut weighed on the market. However, signs of strong U.S. gasoline demand helped limit losses. Brent crude fell 92 cents, or 1.43%, to $63.52 per barrel, while WTI dropped 96 cents, or 1.59%, to $59.60.
U.S. government data showed crude inventories rose by 5.2 million barrels to 421.2 million barrels last week, well above expectations for a much smaller build. Analysts pointed to a rebound in imports and weaker refinery runs during maintenance season as the main contributors.
On the demand side, gasoline inventories fell 4.7 million barrels, a sharper draw than forecasts, suggesting firm U.S. consumption despite broader macro concerns.
In supply developments, Canada signaled it may abandon its cap on oil and gas emissions, potentially paving the way for higher output. Meanwhile, OPEC+ confirmed plans to increase production by 137,000 barrels per day in December, followed by a pause in additional hikes during the first quarter of 2026.
Elsewhere, Kazakhstan’s crude output slipped 10% last month to 1.69 million bpd, still above its OPEC+ quota, while Russia’s Black Sea port of Tuapse halted fuel exports after Ukrainian drone strikes disrupted refinery operations.