- WTI rose after OPEC+ increased its global oil demand forecast for next year while cutting its supply growth estimate.
- Oil prices eased ahead of the US-Russia meeting set for Friday.
- US API crude inventories increased by 1.5 million barrels last week, defying expectations for a 0.8 million-barrel draw.
West Texas Intermediate (WTI) Oil price edges higher after registering more than 1% losses in the previous session, trading around $62.50 per barrel during the Asian hours on Wednesday. Crude Oil prices gain ground as the Organization of Petroleum Exporting Countries and its allies (OPEC+) raised their global Oil demand forecast for next year. Moreover, the group lowered its growth estimate for supply from the United States (US) and other non-OPEC+ producers, signaling a tighter market ahead.
However, the prices of crude Oil struggled ahead of the upcoming US-Russia meeting scheduled on Friday. US President Donald Trump and Russian President Putin will meet in Alaska on August 15, with an aim to finding a resolution to the conflict in Ukraine. Any US-Russian deal could lead to lifting US sanctions on Russia, which may ease supply concerns. However, Ukrainian President Volodymyr Zelenskyy has rejected any territorial concessions.
American Petroleum Institute (API) data showed US crude inventories rose 1.5 million barrels last week, against the expected decline of 0.8 million barrels and the previous 4.2 million barrels decline. The unexpected US crude stocks suggested the summer demand peak is nearing its end.
The US Energy Information Administration (EIA) projects crude output to hit a record 13.41 million bpd in 2025 before easing in 2026 as lower prices slow activity. OPEC maintained its 2025 demand outlook but raised its 2026 growth forecast by 100,000 bpd to 1.38 million bpd, anticipating output gains from other regions as US production declines. Separately, the US Department of Energy increased its estimate for this year’s global oil surplus to 1.7 million bpd.
