Oil holds two-day drop

WTI crude oil futures hovered around $58 per barrel on Wednesday, holding onto most of their two-day slide, as persistent concerns over excess global supply continued to weigh on prices.

Traders are now looking ahead to key reports from the IEA and OPEC later this week for clearer market signals. US energy officials projected that domestic oil output will rise to a record 13.6 million barrels per day this year, further adding to an already saturated global market.

Investors are also closely watching diplomatic efforts to end the Russia–Ukraine conflict, which could reduce the geopolitical risk premium.

Meanwhile, API data showed a 4.8-million-barrel decline in US crude inventories last week, while gasoline and distillate stockpiles rose sharply.

Markets are also awaiting the Federal Reserve’s decision, where a widely expected 25 bps rate cut could support fuel demand next year.