Oil prices dropped on Wednesday, with the U.S. benchmark hitting a multi-week low after crude stockpiles in the world’s leading oil producer and consumer rose more than expected last week.
Brent crude futures fell by 60 cents, or 0.8%, to $76.89 per barrel, while U.S. crude futures dropped 84 cents, or 1.1%, to $72.93, according to Reuters.
Earlier in the session, U.S. crude futures fell to $72.33 per barrel, marking the lowest level since January 2.
According to data from the Energy Information Administration released on Wednesday, U.S. crude stockpiles increased by 3.46 million barrels last week, as refiner intake dropped for the third week in a row.
Analysts surveyed by Reuters had predicted a 3.19-million-barrel increase in crude stockpiles.
Oil trading is expected to remain volatile in the short term as investors process various recent developments, including potential U.S. tariff threats, sanctions on Russian energy exports, and concerns about economic growth in major oil-consuming countries, UBS analyst Giovanni Staunovo wrote to clients on Wednesday.
“Considering the many prevailing uncertainties, we think a prudent approach is still warranted,” Staunovo wrote. “While we expect prices to stay supported at current levels, news flow related to President Trump is likely to drive volatility in the near term.”
Traders are also focusing on the upcoming OPEC+ ministerial meeting set for February 3, where attention will be on the group’s plan to boost supply starting in April.
Last week, President Trump urged OPEC+ to cut oil prices. While the group has not yet responded, delegates have indicated that policy changes are unlikely during the February meeting.
Supply concerns have eased after Libya’s National Oil Corporation announced on Tuesday that export operations were back to normal.
This followed successful talks with protesters who had previously demanded a halt to loadings at one of the country’s key oil ports.
