Brent Slips to $65.71 as IEA Raises Supply Forecast; API Shows 1.52M‑Barrel U.S. Build

Oil prices eased on Wednesday after the International Energy Agency raised its supply outlook for the year and trimmed its demand outlook - a combination that took some wind out of the market's sails.

Brent futures slipped about $0.41 to $65.71 a barrel, while U.S. West Texas Intermediate slid roughly $0.50 to $62.67. Both contracts had already closed lower the day before.

The American Petroleum Institute reported U.S. crude inventories rose by about 1.52 million barrels last week, a build that weighed on tone. Analysts are now waiting for the U.S. Energy Information Administration's weekly report, where the consensus is for roughly a 300,000-barrel draw.

The IEA's updated numbers show stronger supply growth this year and weaker fuel demand across major economies - a bearish tilt. That sits uneasily alongside OPEC+'s more upbeat demand forecast for next year and its downgraded view of non‑OPEC supply growth, a mix that leaves the market with conflicting signals about how tight supplies actually are.

An independent energy analyst argued that, taken together, the agencies' projections imply non‑OPEC production alone can likely cover a modest demand increase north of 1 million barrels per day, which blunts any near-term bullish case for crude.

At the analyst level, Giovanni Staunovo of UBS Group AG (NYSE: UBS) pointed to the API inventory print and the IEA's softer outlook as factors pressuring prices - not exactly a tailwind for bulls.

On the geopolitical front, markets are watching a Friday meeting in Alaska between U.S. President Donald Trump and Russian President Vladimir Putin. The agenda reportedly includes talks on ending Russia's war in Ukraine, a conflict that has been a major driver of oil volatility since early 2022. U.S. officials have downplayed expectations, calling the summit largely a listening exercise, while Ukraine and many European governments maintain that any durable settlement needs Ukraine at the negotiating table.

So: slightly softer demand prospects from the IEA, a small U.S. crude build via the API, mixed signals from OPEC+, and a high‑profile diplomatic meeting on the way. EIA's weekly inventory print - forecast to show about a 300,000-barrel draw - lands today.