Oil slipped 1% as surging US fuel inventories and OPEC+ output plans weighed on market

Oil prices declined on Wednesday, 4 June, as a surprisingly sharp rise in US fuel inventories combined with looming OPEC+ supply increases cast a shadow over the global market.

Brent settled 77 cents, or 1.2% lower, at $64.86 a barrel.

WTI crude closed down 56 cents, or 0.9%, at $62.85.

The downward pressure intensified after data from the US Energy Information Administration (EIA) revealed a substantial build in refined product inventories. Gasoline stocks surged by 5.2 million barrels last week, while distillate inventories—comprising diesel and heating oil—rose by 4.2 million barrels.

Adding to market jitters, reports surfaced that Saudi Arabia, the de facto leader of OPEC, is advocating for more aggressive output increases. The kingdom is reportedly pushing for the group to raise production by at least 411,000 barrels per day in August, and potentially again in September, as it seeks to capitalise on seasonal demand and expand its market share.

The dual pressure of growing supply and underwhelming consumption indicators has renewed worries over a potential supply overhang, especially amid persistent global trade tensions and a mixed economic recovery picture.

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