Brent crude oil futures hovered near $71 per barrel on Wednesday, as rising US crude inventories and lingering economic concerns pressured prices despite ongoing geopolitical tensions.
Brent crude oil hods around $71
The latest report from the US Energy Information Administration (EIA) revealed that nationwide stockpiles increased by a larger-than-expected 1.75 million barrels, though inventories at Cushing, Oklahoma, declined, and fuel reserves fell. The data reinforced worries about weakening demand, particularly as signs of slowing economic growth in major economies weighed on market sentiment.
Investors remained focused on the Federal Reserve’s policy decision and Jerome Powell’s remarks, which could offer insights into the outlook for interest rates and their impact on energy demand. Meanwhile, escalating trade tensions under President Trump have added another layer of uncertainty, with potential implications for global crude flows and economic activity.
OPEC+ set to raise output
On the supply side, OPEC and its allies are set to increase production next month, adding further downward pressure on prices. The move comes as major oil-producing nations weigh the trade-offs between stabilizing prices and maintaining market share. At the same time, Russian President Vladimir Putin rejected calls for a full ceasefire in Ukraine but agreed to a US-backed proposal for Moscow and Kyiv to temporarily halt strikes on each other’s energy infrastructure. While this development does not mark a resolution to the conflict, it raises speculation that Russian crude could gradually reenter global markets, potentially easing supply constraints.
In the short term, oil traders will be watching upcoming economic indicators, central bank policy decisions, and geopolitical developments to gauge the next direction for crude prices.
