Oil Prices Dip on Wednesday

PUKMEDIA

Oil Prices.

Oil prices fell slightly today as markets weighed the effects of a recent trade agreement between the United States and China, alongside expected increases in global oil supply.

According to Reuters, Brent crude dropped by 19 cents to $66.68 a barrel, while US West Texas Intermediate (WTI) slipped 16 cents to $64.82. The decline comes after prices touched a seven-week high earlier in the week, with traders closely watching developments from the trade discussions.

The preliminary agreement between the US and China aims to ease tensions and address export restrictions on rare earth minerals. However, the deal is still pending formal approval from President Trump, leaving markets in a cautious mood.

Adding to downward pressure, OPEC+ confirmed plans to raise output by 411,000 barrels per day starting in July. While rising domestic demand—particularly in Saudi Arabia—may absorb some of the additional supply, analysts expect Brent to fall to around $60 a barrel by the end of the year.

Further influencing the market, the US Energy Information Administration is set to release data on domestic crude inventories. Early estimates suggest a modest drop of 370,000 barrels last week, with forecasts predicting a decline of up to 2 million barrels.

Looking ahead, analysts maintain a guarded outlook for the latter half of 2025, citing concerns over a potential global economic slowdown and increased output from non-OPEC producers.



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