West Texas Intermediate (WTI) crude slipped to around $62.15 during early Asian trading on Wednesday, marking its lowest level in nearly two months. The decline comes amid an unexpected build in US crude inventories and a bearish oversupply outlook from the International Energy Agency (IEA).
Data from the US Energy Information Administration (EIA) showed crude stockpiles rose by 3.036 million barrels in the week ending August 8, defying expectations for a draw of 800,000 barrels. This follows a 3.029 million-barrel decline in the prior week and signals softer demand in the world’s largest oil consumer.
Adding to the downward pressure, the IEA projected an oversupplied market this year, driven by robust output from both OPEC+ members and non-OPEC producers. The agency’s latest report also forecast a record global oil surplus of 2.96 million barrels per day in 2026, citing sluggish demand growth and increasing supply.
Looking ahead, traders are watching Friday’s meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska, where discussions on the Ukraine conflict are expected. Trump has warned of “very severe consequences” for Russia if a peace agreement is not reached. Any escalation could raise the risk of tighter sanctions on Moscow, potentially offering short-term support to crude prices.
