Oil prices slide as global markets tumble and US crude stocks rise

SINGAPORE: Oil prices fell on Wednesday, tracking a sharp downturn across global financial markets as investors grew anxious about slowing economic growth and weaker demand for fuel. A stronger US dollar and reports of rising American crude inventories deepened the bearish mood, pushing prices to new weekly lows.

By early Asian trading, Brent crude was trading around $64.08 a barrel, down 36 cents, while US West Texas Intermediate slipped 40 cents to $60.16. The declines extended losses from Tuesday, marking a second consecutive session of weakness.

Global selloff drags energy markets

Energy traders mirrored the pessimism seen across world stock markets, as fresh concerns about inflated equity valuations — especially in technology sectors tied to artificial intelligence — triggered a broader selloff. Asian shares followed Wall Street’s overnight drop, intensifying risk aversion and driving investors toward safer assets.

The shift in sentiment lifted the US dollar to a two-week high, making oil more expensive for buyers using other currencies. Analysts said the stronger dollar, coupled with rising crude supplies, had turned sentiment against oil in the short term.

“Crude oil is trading lower as risk appetite has taken a sharp hit,” said Tony Sycamore, a market analyst at IG. “The stronger dollar and weaker outlook for growth are both weighing on oil prices.”

Rising US inventories and OPEC+ plans add pressure

Adding to the pressure, data from the American Petroleum Institute showed that US crude stockpiles grew by about 6.5 million barrels during the week ending October 31, suggesting slower refinery demand and steady output.

Meanwhile, producers from the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, recently agreed to raise output by 137,000 barrels per day in December.

The alliance said it would pause further increases in early 2026, but analysts believe the move offers little short-term relief for prices.