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Oil prices fell more than 1% on Wednesday to a two-week low, pressured by growing concerns over a potential global supply glut, though firm US fuel demand helped limit deeper losses.

Brent crude settled 92 cents, or 1.4%, lower at $63.52 a barrel. 

WTI crude declined 96 cents, or 1.6%, to $59.60 a barrel.

Prices weakened after the US Energy Information Administration (EIA) reported a 5.2 million-barrel rise in crude inventories for the week ending 31 October — the largest weekly build since July 2025. While significant, the figure fell short of some industry expectations, tempering part of the bearish sentiment.

Meanwhile, product inventories drew across the board, reflecting steady consumption. Gasoline stocks fell 4.7 million barrels to 206 million barrels, compared with analysts’ expectations for a 1.1-million-barrel draw, indicating stronger-than-expected demand.

Further downward pressure stemmed from Canada’s new climate competitiveness strategy, announced 4 November, which ends the oil and gas emissions cap and reverses requirements for fossil fuel companies to substantiate environmental claims. OPEC+ also signaled a December output increase of 137,000 barrels per day, adding to oversupply concerns.

Despite the pullback, analysts said resilient US fuel demand could support prices in the near term, providing some cushion against further declines.

Written: Farid Muzaffar