Oil prices recorded slight gains on Wednesday as investors continued to assess U.S. inventory data that pointed to stronger fuel demand, while weak economic indicators from major oil-importing nations weighed on the market.
Brent crude futures rose by 45 cents, or 0.7%, to $64.89 a barrel by 10:41 GMT, after touching a two-week low in the previous session. U.S. West Texas Intermediate (WTI) crude climbed by 46 cents, or 0.76%, to $61.02 a barrel.
Giovanni Staunovo, analyst at UBS, said oil likely found support from U.S. data that turned out “better than feared,” showing a sharp drop in refined product inventories, which signals that demand remains resilient.
According to data from the American Petroleum Institute (API) cited by Reuters, U.S. crude inventories rose by 6.52 million barrels during the week ending October 31, while gasoline stocks fell by 5.65 million barrels and distillate inventories declined by 2.46 million barrels.
Thomas Varga, analyst at PVM, noted that weak economic data combined with a stronger U.S. dollar limited oil’s upside, although prices found some support from falling refined-product inventories.
Data showed that industrial activity in China contracted for the seventh consecutive month in October, while the U.S. manufacturing sector shrank for the eighth straight month over the same period.
The U.S. Dollar Index — which measures the greenback’s performance against the euro, the pound, and a basket of other currencies — hit its highest level in three months, supported by divisions within the Federal Reserve that suggested lower odds of a rate cut in December.
A stronger dollar increases the cost of dollar-denominated oil for holders of other currencies, potentially dampening demand, while lower interest rates typically boost consumption.
On the supply side, Russia’s Tuapse port on the Black Sea suspended fuel exports, and its refinery halted crude-processing operations after Ukrainian drone strikes targeted energy infrastructure last Sunday, according to two industry sources and vessel-tracking data from LSEG.
As for production policy, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed on Sunday to raise output by 137,000 barrels per day in December while suspending any additional increases during the first quarter of 2026.
