Market News

Yongchang Chin

Brent fell toward $70 a barrel after losing 0.7% on Tuesday, while West Texas Intermediate was near $66. The American Petroleum Institute said nationwide inventories rose by 4.6 million barrels last week, although a draw was seen at the key hub in Cushing, Oklahoma. Official data are due later on Wednesday.

Investors will also watch for a Federal Reserve interest-rate decision, plus commentary from Chair Jerome Powell on the outlook as President Donald Trump amps up his trade war. There’s been a risk-off tone in wider markets recently amid concerns about a slowdown, with a selloff in equities.

Crude remains markedly lower from a peak in January, as a slew of bearish drivers combines to pressure prices. On the supply side, OPEC and its allies are preparing to increase production, while the escalating trade frictions are threatening a hit to demand just as consumption in China remains weak.

“Oil’s rebound has run out of momentum as the broader risk-off move counters re-emerging geopolitical risks, while rising US crude inventories have only added further pressure,” said Warren Patterson, head of commodities strategy for ING Groep NV in Singapore. “Broader macro fears are likely to continue to dictate price action.”

Geopolitical concerns — which had lifted prices on Monday — remained in focus. Trump has pressed Iran to rein in the Houthis, viewing attacks from the Yemeni militant group as if Tehran were directly responsible. Russian President Vladimir Putin, meanwhile, declined the US president’s bid for a ceasefire in Ukraine, agreeing instead to limit attacks on the country’s energy infrastructure.