Oil slid to two-month lows on swelling US stocks, supply growth signals

Crude oil futures sank to their weakest levels in over two months on Wednesday as swelling US inventories and downbeat demand projections from major agencies deepened market pessimism, overshadowing simmering geopolitical risks from the Ukraine conflict.

Brent crude declined 49 cents, or 0.7%, to settle at $65.63 a barrel, after touching an intraday low of $65.01 — its lowest since June. 

WTI lost 52 cents, or 0.8%, to $62.65, having earlier dipped to $61.94, also the weakest since June.

The decline accelerated after US government data showed commercial crude inventories climbed by roughly 3 million barrels last week, pushing stockpiles to their highest in two months. The Energy Information Administration not only confirmed the build but also revised its 2025 outlook, lifting its forecast for global supply growth while trimming expectations for demand.

The bearish tone was compounded by the International Energy Agency, which warned that global oil inventories could swell to a record high next year. 

Still, geopolitical tensions remain a potential counterweight. Market participants are closely watching Friday’s planned meeting in Alaska between US and Russian officials, framed as a bid to revive stalled Ukraine peace talks. Earlier this week, President Trump warned of “severe consequences” should Moscow obstruct a settlement, underscoring the fragile diplomatic backdrop.

Written: Farid Muzaffar