Oil Steady as Industry Report Points to Shrinking US Stockpiles
Oil steadied after a report signaled a decline in US stockpiles, while investors weighed the outlook for Ukraine-Russia truce talks.
Brent traded near $66 a barrel after falling 1.2% on Tuesday, while West Texas Intermediate was below $63. The industry-funded American Petroleum Institute reported crude inventories fell by 2.4 million barrels last week, according to people familiar with the figures. Official data is due later Wednesday.
The market is keeping close tabs on progress toward a ceasefire to the war in Ukraine following a series of high-level talks brokered by President Donald Trump. Any eventual peace deal could lead to fewer restrictions on Russia’s crude exports, although Moscow has largely kept its oil flowing.
A lot of that crude has been shipped to India since the war, drawing criticism from Trump recently. On Tuesday, US Treasury Secretary Scott Bessent claimed some of the “richest families in India” benefited from purchases of Russian oil, reiterating plans to boost tariffs on the South Asian nation.
The longer-term outlook for the oil market looks bearish, with expectations for a glut later in 2025 as OPEC+ returns barrels and as Trump’s trade policies spark concerns about demand. Futures are down more than 10% this year.
Source: Bloomberg
