Oil prices gained ground on Wednesday, reversing two straight sessions of declines. The rebound came as OPEC+ held on to its global demand forecast despite increasing output levels, while market participants digested a slight uptick in U.S. crude inventories.
By 22:17 ET (02:17 GMT), September contracts for Brent crude were trading 0.4% higher at $69.01 per barrel, while West Texas Intermediate (WTI) crude moved up 0.6% to $66.94 a barrel.
Earlier in the week, oil markets experienced heightened volatility after U.S. President Donald Trump hinted at a significant announcement regarding Russia, sparking concerns about possible disruptions to energy supplies. However, after Trump opted to provide Russia with a 50-day window to resolve the Ukraine conflict rather than imposing immediate measures, oil prices slid nearly 3% over two sessions.
The Organization of the Petroleum Exporting Countries (OPEC), in its latest monthly outlook, reiterated its projections for oil demand in 2025 and 2026, expressing confidence that global economic activity will remain resilient.
The organization anticipates that major trade partners will strike reasonable agreements with the U.S., helping to reduce uncertainty and support global growth, even amid ongoing trade disputes.
Despite these supportive factors, oil markets remain cautious given the prospect of new U.S. tariffs from August 1, which could stoke inflation and weigh on economic growth, ultimately hitting fuel consumption.
OPEC+ expects global refinery throughput—particularly in the U.S.—to stay elevated as travel demand lifts consumption of gasoline, jet fuel, and residual fuels in the coming months. The alliance is simultaneously pushing ahead with another production hike, boosting output in August by 548,000 barrels per day.
Meanwhile, the American Petroleum Institute estimated an increase of 839,000 barrels of U.S. crude inventories for the week ended July 11, as per Reuters. Gasoline inventories expanded by 1.93 million barrels, while distillate stocks increased by 828,000 barrels.
