Crude Oil Prices Fall Over 1% to Two-Week Lows; Brent at $63.52

Crude oil prices declined more than 1% on Wednesday, closing at two-week lows amid concerns of a global supply glut. However, stronger-than-expected U.S. gasoline demand helped limit losses.

Global Price Movement

• Brent Crude Futures: Closed at $63.52 per barrel, down 92 cents or 1.43%
• WTI Crude Futures: Settled at $59.60 per barrel, down 96 cents or 1.59%

The decline followed U.S. government data showing a larger-than-expected build in crude inventories.

U.S. Inventory and Demand Data

• Crude Stocks: Rose by 5.2 million barrels to 421.2 million barrels last week (vs. forecast of 603,000-barrel rise)
• Gasoline Inventories: Fell by 4.7 million barrels to 206 million barrels (vs. expected draw of 1.1 million barrels)

The sharp drop in gasoline inventories indicates strong domestic fuel demand, partially offsetting bearish sentiment from crude stock builds.

Market Drivers and Geopolitical Factors

• OPEC+ Decision: Group agreed to increase output by 137,000 barrels per day in December and pause further hikes in Q1 2026
• Canada Policy: Budget plan signals potential removal of oil and gas emissions cap, raising supply concerns
• Kazakhstan Output: Fell 10% to 1.69 million barrels per day, still above OPEC+ quota
• Russia Update: Black Sea port of Tuapse suspended fuel exports; refinery halted crude processing after drone attacks

Read More: Indian Exports to US Drop 37.5% in 4 Months Amid Tariff Turmoil.

Conclusion

Crude oil prices eased on Wednesday as inventory builds reinforced oversupply concerns, while strong U.S. gasoline demand provided some support. With Brent and WTI at two-week lows and MCX crude trading lower, market focus remains on OPEC+ output strategy and geopolitical developments.

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