Oil prices edged lower on Wednesday as traders braced for official U.S. inventory data expected to confirm a significant crude stock build. Brent crude slipped 0.3% to $66.45 per barrel, while West Texas Intermediate fell to $63.50.
According to the American Petroleum Institute (API), U.S. crude inventories rose by 4.3 million barrels last week—potentially the biggest increase since March—while gasoline and distillate stocks declined by 1.4 million and 3.7 million barrels, respectively. Analysts noted that the draw in refined products supports the view of a tightening oil market heading into the summer driving season. Official weekly inventory data from the U.S. Energy Information Administration is due at 14:30 GMT.
Despite the dip, oil has retained most of its recent four-day rally—its strongest since October—driven by easing U.S.-China trade tensions and aggressive U.S. policy toward Iran. President Trump, during a visit to Saudi Arabia, reiterated threats to curb Iranian oil exports unless a new nuclear deal is reached. Meanwhile, his administration also imposed sanctions on networks transporting Iranian oil to China.
The market is also watching for any impact from U.S. diplomatic efforts in the Gulf, with speculation that the U.S. may use low prices to refill its Strategic Petroleum Reserve. Uncertainty remains around potential supply shifts due to U.S. actions involving Iran, Russia, and Venezuela.
Analysts warn that attention may soon shift back to OPEC+ strategy, especially as the group meets in early June, with Saudi Arabia pushing for increased output to penalize non-compliant members—raising the risk of oversupply.