Oil prices fell to near 11-week lows on Wednesday following reports of higher U.S. crude inventories and rising global supply.
The International Energy Agency (IEA) lowered its 2025 oil demand-growth forecast to 0.7 million barrels per day (bpd), down 20,000 bpd from July and 350,000 bpd since the start of the year.
The decline is mainly due to weaker demand from developing economies. The agency warned that supply could exceed demand by the end of 2025 and into 2026.
The U.S. Energy Information Administration (EIA) also cut its Brent crude forecast for the fourth quarter to $58 per barrel, down from $71 in July. The EIA noted that U.S. supply is expected to rise 2 million bpd in the second half of 2025, while demand will increase by only 1.6 million bpd.
Data from the American Petroleum Institute (API) and the Department of Energy (DOE) confirmed a surprise increase in U.S. crude stocks.
Crude inventories rose by 3.036 million barrels last week, higher than expected. The Cushing hub saw its sixth consecutive weekly stock gain, and U.S. crude production also edged higher.
Traders are closely watching upcoming talks that could ease U.S. sanctions on OPEC+ member Russia. Prices have fallen this year as OPEC+ accelerated output, though recent moves have been smaller amid thin summer trading.
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