Oil Prices Drop as US Fuel Inventories Surge:Trade Tensions Loom

June 4, 2025

3 minutes read

US

Oil prices fell over 1% today, Wednesday, driven by a surprising surge in U.S. gasoline and diesel inventories, signaling an oversupply in fuel markets.

The decline was compounded by OPEC+ plans for increased output and uncertainties surrounding global energy demand amid escalating trade tensions.

Brent crude futures closed down 77 cents, or 1.2%, at $64.86 per barrel, while U.S. West Texas Intermediate (WTI) crude settled 56 cents, or 0.9%, lower at $62.85.

 

Unexpected Surge in US Fuel Stocks

The U.S. Energy Information Administration (EIA) reported a significant increase in fuel inventories, with gasoline stocks rising by 5.2 million barrels—far exceeding analyst expectations of a 600,000-barrel rise.

Distillate stockpiles, including diesel, climbed by 4.2 million barrels, compared to forecasts of a 1 million-barrel increase.

Despite a 4.3 million-barrel drawdown in crude inventories, which surpassed expectations of a 1 million-barrel decline, the large buildup in refined products overshadowed the crude draw.

 

OPEC+ Output Plans and Trade Tensions

OPEC+ producers’ plans to boost output by 411,000 barrels per day (bpd) in July added downward pressure on oil prices,  reflecting bearish sentiment due to fears of a supply glut.

Russia’s 35% decline in May oil and gas revenue may make Moscow resistant to further output hikes, as lower crude prices strain its economy.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) downgraded its global growth forecast, citing the adverse impact of U.S. President Donald Trump’s trade policies on the U.S. economy and global oil demand.

 

Geopolitical and Trade Uncertainties

Geopolitical tensions and trade frictions further clouded the energy demand outlook. Trump’s accusations of China violating tariff rollback agreements, ahead of an anticipated call with Chinese President Xi Jinping, heightened market uncertainty.

Additionally, Russian President Vladimir Putin’s warnings to Trump regarding Ukrainian drone attacks on Russian assets escalated geopolitical risks, though these provided only temporary price support earlier in the week.

 

Canadian Wildfires and Production Recovery

In Canada, wildfires had reduced oil output by approximately 344,000 bpd, but production is resuming as companies like Canadian Natural Resources restarted operations at sites like Jackfish 1 in northern Alberta.

This recovery could further contribute to global supply pressures, adding to the bearish outlook for oil prices.

Market Outlook

Despite a brief 2% price surge on Tuesday driven by supply disruption fears and uncertainty over a U.S.-Iran nuclear deal, the combination of rising U.S. fuel inventories, OPEC+ output increases, and trade-related economic concerns has tilted market sentiment bearish.

Investors remain cautious as global trade tensions and geopolitical developments continue to shape the energy market’s trajectory.

Read more News:

Share:
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Related Links

LOOKMAN

Lookman Urges Atalanta to Find Clinical Edge

Nigerian star Ademola Lookman has called on his team, Atalanta, to show greater killer instinct. ...

SUPER EAGLES

Super Eagles Camp Opens in Rabat for World Cup Playoff

The Nigeria Football Federation (NFF) has confirmed the final training details for the Super Eagles. ...

ONUACHU

Nigerian Star Paul Onuachu Leads Goal Charts in Turkey

Following a difficult period last season, Nigerian forward Paul Onuachu has fully regained his sharp ...

Osimhen

Transfer Buzz: Osimhen Pushing Galatasaray to Sign Teammate

Reports emerging from the Italian media suggest that star striker Victor Osimhen is actively urging ...

Features

Countries Aircraft

African Countries with the Largest Military Aircraft Fleets in 2025

Africa’s military aircraft fleets are key for defense, surveillance, and peacekeeping. In 2025, several nations ...

Countries

Top 10 African Countries with Best Salaries in 2025

Africa’s job market is growing fast. In 2025, some countries offer great pay. This list ...

Kanye West

New Documentary Explores Kanye West’s Turbulent Journey

A new documentary, In Whose Name?, directed by Nico Ballesteros, offers an intimate look at ...

japa

Top 9 African Countries Sending Immigrants to the United States

Africa’s influence in the United States continues to expand through immigration. Many individuals from the ...

GOLD_3_6

Top 10 Countries Benefiting from Gold Trading in 2025

Gold trading drives wealth for nations with large reserves. In 2025, countries with significant gold ...

FNB-Stadium

Top 10 Most Expensive Stadiums in Africa for 2025

Africa’s sports infrastructure shines with world-class stadiums built for football, rugby, and major events. These ...

Gold

Top Gold-Producing Countries in Africa for 2025

Africa remains a global leader in gold production, contributing significantly to the world’s supply. In ...

digital-nomad-visa

Top 10 Digital Nomad Visa Countries for 2025

As remote work continues to thrive, digital nomad visas offer professionals the chance to live ...

Latest News

Today in History

In the early 1940s, the FCC assigned television`s Channel 1 to mobile services (like two-way radios in taxis) but did not re-number the other channel assignments.

Exchange Rate Per Dollar

AM Armenian Dram382.7971
GH Ghana Cedi10.8803
GM Gambian Dalasi72.5
GN Guinea Franc8,680.62
NG Nigerian Naira₦1,446.16
CF CFA Franc BEAC567.0248
30 Oct · CurrencyRate · USD
CurrencyRate.Today
Check: 30 Oct 2025 22:05 UTC
Latest change: 30 Oct 2025 22:00 UTC
API: CurrencyRate
Disclaimers. This plugin or website cannot guarantee the accuracy of the exchange rates displayed. You should confirm current rates before making any transactions that could be affected by changes in the exchange rates.
You can install this WP plugin on your website from the WordPress official website: Exchange Rates🚀

YOUR THOUGHTS

Let us know what you think

Contact the People’s Paper with feedback on stories and how we could make wapress.africa even better!

newsletter image

Stay up to date with the latest from West Africa Press

Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on WApress.

Subscribe Newsletter!

Be the first to receive our latest contents and more...

Need help?