Quick overview

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Oil prices marginally declined during the mid-week trading session due to a deteriorating supply-demand balance after rising OPEC+ output and ongoing concerns about the state of the global economy stemming from tariff tensions.

US West Texas Intermediate crude decreased by 0.1 percent to $63.3 a barrel, while Brent crude futures fell by 5 cents, or 0.1 percent, to $65.5 a barrel. Both benchmarks rose roughly 2% on Tuesday to a two-week high, supported by worries about Canadian wildfires disrupting supply and expectations that Iran will reject a US nuclear deal proposal critical for lifting sanctions on the major oil producer.

The crude oil market struggles to maintain its gains despite stalled Iran-U.S. relations and ongoing concerns about Canadian supply.

White House press secretary Karoline Leavitt announced Monday that President Donald Trump and Chinese leader Xi Jinping are expected to meet this week.

Trump’s accusation came days after he claimed that China had broken a deal to remove trade restrictions and tariffs.  The required trading partners must submit their best offers by Wednesday amid lengthy negotiations and shifting timelines.

Markets reduced their growth projections. The Organization for Economic Co-operation and Development (OECD) lowered its forecast for global growth as the repercussions of Trump’s trade war worsen the U.S. economy.

Numerous wildfires have devastated Canada since the start of May, disrupting the nation’s crude oil production. According to data released by the American Petroleum Institute on Tuesday, market sources reported a decline of 3.3 million barrels in US crude oil stocks during the week ending May 30.  Additionally, gasoline inventories rose by 4.7 million barrels.