BEIJING — Oil prices edged lower on Wednesday as a broad decline across global markets and a firm U.S. dollar dampened investor appetite for risk assets, while traders evaluated the latest signals on supply and demand.
Brent crude futures fell 6 cents, or 0.09%, to $64.38 a barrel by 07:06 GMT, after hitting a near two-week low in the previous session. U.S. West Texas Intermediate (WTI) slipped 7 cents, or 0.12%, to $60.49.
Analysts at ANZ noted that a “risk-off” tone swept through markets, prompting investors to scale back positions in energy commodities.
Global Market Turbulence and a Stronger Dollar
Asian equities tumbled on Wednesday, with volatility climbing to its highest level since April following a tech-led selloff on Wall Street. The slide reignited concerns about overstretched valuations in major global markets.
The U.S. dollar index—which tracks the greenback against a basket of major currencies—held near a three-month high, supported by signs of division among Federal Reserve policymakers, suggesting low odds of an interest rate cut in December.
A stronger dollar typically makes dollar-denominated oil more expensive for buyers using other currencies, weighing on global demand. Conversely, any move by the Fed to lower interest rates would likely boost consumption and energy demand.
“Crude oil is trading lower as risk sentiment shifted sharply negative, boosting the safe-haven U.S. dollar—both factors weighing on prices,”
said Tony Sycamore, market analyst at IG.
Rising U.S. Inventories and OPEC+ Output Add Pressure
The American Petroleum Institute (API) reported a rise in U.S. crude stockpiles for the week ending October 31, while fuel inventories declined, according to market sources who reviewed the data.
At the same time, supply-side developments continued to pressure prices. The OPEC+ alliance—which includes the Organization of the Petroleum Exporting Countries (OPEC) and its partners—announced plans on Sunday to raise output by 137,000 barrels per day (bpd) in December.
The group will pause additional increases in the first quarter of 2026, though analysts at LSEG cautioned that the move is “unlikely to offer meaningful support” for prices in November and December.
OPEC’s own production rose by just 30,000 bpd in October, a sharp slowdown from the 330,000 bpd increase in September, as output declines in Nigeria, Libya, and Venezuela offset earlier planned gains.
Sanctions Keep Supply in Check
Despite rising production, Western sanctions on Russia and Iran have resulted in record volumes of oil being held in floating storage, helping to prevent a supply glut from developing, according to the CEO of Gunvor Group, a Swiss-based commodities trader.
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