Oil prices fell again on Wednesday, weighed down by a broad pullback across global markets and persistent strength in the U.S. dollar, while traders reassessed the near-term supply trajectory.
Brent crude futures were down 6 cents, or 0.1%, to $64.38 a barrel by 0408 GMT, after touching a near two-week low in the previous session. U.S. West Texas Intermediate dipped 10 cents, or 0.17%, to $60.46.
Analysts said the steep risk-off sentiment seen this week — triggered largely by a sharp tech-led rout on Wall Street — continued to spill into commodities. Asian equities slid heavily early Wednesday, and volatility gauges rose to their highest levels since April, amplifying caution in oil markets.
The U.S. dollar index hovered near a three-month high, supported by signs of disagreement within the Federal Reserve over the timeline for interest rate cuts — lowering expectations for any easing at the December meeting. A firmer dollar typically cools appetite for dollar-priced crude among foreign buyers.
“Crude oil is trading lower once again as risk sentiment has shifted sharply negative, boosting the safe-haven U.S. dollar,” IG market strategist Tony Sycamore wrote.
Fresh U.S. inventory data also added downward pressure. The American Petroleum Institute (API) reported an unexpected rise in U.S. crude stockpiles for the week ending Oct. 31, according to market sources.
On the supply side, OPEC+ over the weekend confirmed output will increase by 137,000 barrels per day (bpd) in December, and the alliance signaled it will pause further additions during the first quarter of 2026. However, analysts at LSEG noted that the pause was unlikely to give meaningful support to November or December prices if demand remains under strain.
OPEC’s own output rose by just 30,000 bpd in October, compared with a 330,000 bpd jump in September — as increases in some members were offset by notable declines in Nigeria, Libya and Venezuela.
Source:Africa Publicity
