Oil Prices React to IEA's Pessimistic Demand Outlook

Crude oil prices experienced a notable decline, dropping over 1% on Wednesday. This shift followed the International Energy Agency's (IEA) announcement of a significantly lowered demand outlook for 2025, marking the weakest growth projection in five years. The IEA also warned of a potential worldwide oversupply persisting through 2026.

Unexpected Increase in US Crude Stocks Adds Pressure

Adding to the market's concerns, the American Petroleum Institute (API) reported an unexpected 2.4 million barrel increase in US crude stocks last week. This figure starkly contrasts with the anticipated 1.68 million barrel reduction, further influencing oil price dynamics.

Market Figures Reflect the Downturn

West Texas Intermediate (WTI) for May deliveries saw a 1.09% decrease, trading at $60.65 per barrel at 2:35 am ET. Similarly, Brent crude for June settlements fell by 1.05%, settling at $64.02.