Oil prices fell on Wednesday as rising crude inventories in the United States reignited concerns about oversupply, although recent attacks on Russian energy infrastructure have kept losses in check.
Brent crude futures dropped 71 cents, or 1%, to US$64.18 a barrel by 11:11 GMT, following a 1.1% gain in the previous session. U.S. West Texas Intermediate (WTI) crude fell 63 cents, or 1%, to US$60.11 a barrel, after climbing 1.4% on Tuesday.
Data from the American Petroleum Institute showed that U.S. crude stocks rose by 4.45 million barrels in the week ended 14 November. Gasoline inventories increased by 1.55 million barrels and distillate stocks grew by 577,000 barrels, highlighting persistent supply pressures in domestic markets.
Market attention is also focused on looming U.S. sanctions on Russian oil producers Rosneft and Lukoil, which take effect on 21 November. The sanctions are expected to further squeeze Russia’s oil exports, prompting buyers in China and India to shift to alternative suppliers.
Analysts say the potential Russian supply disruptions are counterbalanced by forecasts that global oil output continues to exceed current demand, putting downward pressure on prices.
Meanwhile, in Europe, diesel fuel profit margins surged to their highest level since September 2023 following Ukrainian attacks on Russian energy and port infrastructure, as refinery margins rose globally.
Official U.S. government inventory figures are due later on Wednesday. Analysts polled by Reuters forecast a modest 600,000-barrel decline in crude stocks for the week ending 14 November.
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