Brent crude oil futures extended gains toward $70 per barrel on Wednesday, supported by a weaker US dollar and reduced global oversupply forecasts.
The US joined other agencies in lowering projections, with the IEA cutting its 2025 surplus forecast and halving its next year's glut projection due to potential declines in Iranian and Venezuelan flows. The EIA's monthly report also projected a decline in global oil inventories in Q2 2025. However, prices remained relatively near multi-year lows, pressured by erratic US trade shifts that prolonged risk-asset declines, along with concerns that a tariff-induced economic slowdown could curb oil demand.
Additional headwinds came from the looming OPEC+ output hike and expectations of increased Russian exports following Ukraine's acceptance of a US-brokered 30-day truce. Meanwhile, API data showed US crude stocks rose by 4.2 million barrels last week, exceeding the expected 2.1 million-barrel build.
Source: Trading Economics
