BEIJING: Oil prices fell on Wednesday amid a broader selloff in global financial markets that underscored concerns about economic and fuel demand growth, with a stronger U.S. dollar and reports of rising U.S. crude stockpiles adding to the worries.
Brent crude futures fell 36 cents, or 0.56%, to $64.08 a barrel by 0221 GMT. U.S. West Texas Intermediate crude was down 40 cents, or 0.66%, at $60.16. Both contracts extended their losses from Tuesday.
Oil markets declined as part of a wider slump in equity markets, with Asian stock markets adding on Wednesday to an overnight drop on Wall Street because of worries stock valuations are stretched, particularly for companies tied to artificial intelligence.
The risk-off sentiment pushed the U.S. dollar higher against its peers. A stronger greenback makes dollar-denominated oil more expensive for holders of other currencies, which can impact demand.
"Crude oil is trading lower ... as risk sentiment shifted sharply negative, boosting the safe haven U.S. dollar, both of which weighed on the crude oil price," IG market analyst Tony Sycamore said in a note.
Prices were also under pressure as the American Petroleum Institute said U.S. crude stockpiles rose by 6.52 million barrels in the week ended October 31, according to market sources citing the API figures on Tuesday.
Supply-side concerns continue to weigh on prices. The Organization of Petroleum Exporting Countries and allied producers, known as OPEC+, agreed on Sunday to increase output by 137,000 barrels per day in December.
The group decided to pause further increases in the first quarter of 2026. However, the pause was "unlikely to offer meaningful support to November and December prices," LSEG analysts said in a note.
OPEC itself only added 30,000 bpd to its output in October from the previous month as previously agreed OPEC+ increases were offset by declines in Nigeria, Libya and Venezuela. - Reuters
