Hey amigos! 📣 Oil prices slid on Wednesday after the International Energy Agency (IEA) shook up its supply outlook, predicting supply could outpace demand this year. Plus, everyone's eyeing Friday's Alaska meetup between US President Donald Trump and Russian President Vladimir Putin 🤝.
Brent crude dipped 0.7% to $65.67 a barrel, while US West Texas Intermediate fell 0.8% to $62.64, per Reuters. Both benchmarks also closed lower on Tuesday — so it's a bit of a slide 📉.
Why the dip? Many analysts think the Trump-Putin talks won’t lead to new sanctions on Russia, meaning Russian oil keeps flowing to the south and east. 'Oil prices drifted lower on expectations that Friday’s summit would not result in additional sanctions on Russia,' says PVM Oil’s Tamas Varga.
The IEA also pared back its demand forecast due to soft consumption in major economies, even as OPEC+’s recent decisions pushed it to bump up the supply outlook. Meanwhile, OPEC’s own report sees demand picking up next year and expects less supply growth from the US and other non-OPEC+ producers, hinting at a tighter market ahead 🔍.
Inventory reports added to the mix: the American Petroleum Institute showed US crude stocks rose by 1.52 million barrels last week, while gasoline inventories dropped and distillates inched up. And the US Energy Information Administration forecast Brent could average under $60 per barrel in Q4—the first time since 2020—if supply keeps outpacing demand.
With shifting forecasts, rising stockpiles, and a high-profile summit on the horizon, oil markets are on high alert. Will we see a rebound or more slides? Stay tuned! 🌐🚀
Reference(s):
Oil falls as IEA raises supply forecast ahead of US-Russia meeting
cgtn.com
