Oil prices extended their decline on Thursday, hitting multi-week lows before paring losses into the close, as supply concerns and geopolitical uncertainty continued to weigh on sentiment.
Brent crude settled at $65.63, down 49 cents (−0.7%), after touching an intraday low of $65.01 — its weakest level since June 6. U.S. West Texas Intermediate (WTI) closed at $62.65, down 52 cents (−0.8%), after dipping to $61.94, its lowest since June 2.
The EIA reported a 3 million barrel build in U.S. crude stocks last week, defying analyst expectations for a draw of 275,000 barrels. The increase was driven in part by a 699,000 bpd rise in net crude imports, as exports remain under pressure from tariff disputes.
The International Energy Agency also raised its forecast for oil supply growth this year but trimmed its demand outlook, adding a bearish undertone to the market.
Geopolitical risks remain in focus ahead of Friday’s Trump–Putin meeting in Alaska. Treasury Secretary Scott Bessent said that if talks fail to yield progress on ending the Ukraine war, the U.S. could increase sanctions or impose additional secondary tariffs, urging European allies to follow suit.
Meanwhile, OPEC+ in its monthly report projected higher global oil demand for next year and lowered its non-OPEC supply growth estimate, suggesting a potentially tighter market ahead. Independent analyst Gaurav Sharma noted that even with a moderate 2025 demand growth figure, non-OPEC producers could still meet incremental needs without significant OPEC intervention.