WTI crude futures pared earlier losses to trade largely flat around $63.30 per barrel on Wednesday, as traders weighed a mix of global trade developments, supply disruptions, and inventory data.
Oil prices little changed on Wednesday
The oil market continues to navigate a complex backdrop of shifting fundamentals and geopolitical risks. Over the weekend, OPEC+ announced a modest production increase of 411,000 barrels per day for July, marking the third consecutive monthly hike as the group cautiously unwinds earlier supply curbs. The move reflects a measured response to recovering demand projections while attempting to avoid oversupplying a still-fragile market.
Adding to supply-side volatility, wildfires in western Canada temporarily shut down approximately 7% of the country's oil output. While recent rainfall has helped contain some of the blazes, allowing at least one major operator to resume production at a previously idled site, the situation remains fluid and has added a layer of uncertainty to North American supply expectations.
API lates figures
In the US, the American Petroleum Institute (API) reported a sharper-than-expected 3.3 million-barrel draw in crude inventories last week, well above analysts’ forecasts of a 0.9 million-barrel decline. The bullish inventory data suggests stronger refinery runs or export activity, lending some support to prices despite broader market caution.
On the geopolitical front, attention remains fixed on upcoming talks between US President Donald Trump and Chinese President Xi Jinping, scheduled for later this week. With trade tensions lingering and previous rounds of tariffs still in place, markets are watching closely for any signs of progress—or further deterioration—in the relationship between the world’s two largest economies. Any breakthrough or escalation could have meaningful implications for global energy demand and investor sentiment more broadly.
