Brent crude oil, the world’s most widely used oil price benchmark, fell to $65.95 a barrel on Wednesday, slightly down from the day before. Over the past month, Brent has lost about 5%, and compared to the same time last year, prices are more than 10% lower.
The drop came despite new figures from the American Petroleum Institute (API), which showed that U.S. crude oil inventories fell by 3.7 million barrels last week. Normally, when oil stocks fall, prices rise because it signals stronger demand or tighter supply. However, the impact was offset by higher gasoline and diesel inventories, which suggest fuel demand is still weak.
Traders are also paying close attention to the OPEC+ alliance. Reports said eight members of the group are considering raising output in November by between 274,000 and 411,000 barrels per day. While OPEC+ denied rumors of a bigger 500,000 barrel increase, the mixed messages created uncertainty and added pressure to prices.
Global politics added another layer of risk. U.S. President Donald Trump announced that Israeli Prime Minister Benjamin Netanyahu supports his Gaza peace plan, but Hamas has not yet agreed, leaving the situation unclear.
At the same time, concerns about the U.S. government shutdown are weighing on energy markets, as political gridlock in Washington could hurt economic activity and reduce oil demand.
