Oil prices flat as rising US stockpiles hint summer demand is fading  

SINGAPORE: Oil prices steadied on Wednesday after a drop in the previous session, as industry data showed US crude stockpiles rose last week, signalling that the summer demand season may be coming to an end. 

Brent crude futures inched up 3 cents to $66.15 a barrel by 01:02 GMT, after falling 0.8 percent on Tuesday. US West Texas Intermediate (WTI) crude slipped 3 cents to $63.14, following a 1.2 percent decline in the last session. 

According to market sources citing American Petroleum Institute (API) figures, US crude inventories grew by 1.52 million barrels last week. Gasoline supplies fell, while distillate stocks posted a slight increase. 

The official Energy Information Administration (EIA) data, due later on Wednesday, will offer a clearer picture. If the report confirms a drop in oil stocks, it could mean demand has peaked for the summer driving season, which usually runs from late May’s Memorial Day holiday to early September’s Labor Day. Analysts polled by Reuters expect a modest decline of around 300,000 barrels. 

OPEC raises 2026 demand growth outlook, EIA predicts US production slowdown 

Fresh outlooks from both the EIA and the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday also weighed on sentiment. While they see higher production this year, the EIA expects US output to fall in 2026 as weaker prices slow drilling. The agency forecasts a record 13.41 million barrels per day in 2025, driven by improved well productivity, before easing the following year. 

OPEC’s latest monthly report raised its 2026 global oil demand growth forecast by 100,000 barrels per day to 1.38 million bpd, while keeping its 2025 estimate unchanged. 

Geopolitical factors are also in focus. The White House played down hopes for a quick ceasefire between Russia and Ukraine, signalling no immediate end to sanctions on Russian crude, which have supported prices. US President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska on Friday to discuss the war. 

“Trump has lowered expectations for his talks with Putin, but the chances of fresh sanctions on Russian oil continue to ease,” said ANZ senior commodity strategist Daniel Hynes.