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WAM reported that oil prices eased on Tuesday as traders weighed fresh data pointing to higher-than-expected U.S. crude stockpiles and persistent concerns over economic growth in major consuming nations. The decline followed a volatile session in which early gains were erased by profit-taking and shifting sentiment around upcoming inventory releases from the American Petroleum Institute. Benchmark contracts settled the day with modest losses after failing to hold above key technical levels that had provided support in prior trading.
According to the WAM dispatch, Brent crude for September delivery dropped 43 cents to close at $84.75 a barrel on the ICE Futures Europe exchange while West Texas Intermediate fell 38 cents to $81.90 on the New York Mercantile Exchange. The moves came after industry sources indicated a build of approximately 2.1 million barrels in U.S. crude inventories for the week ending July 17. That figure contrasted with analyst expectations for a draw of around 500,000 barrels, contributing to the softer tone in the session.
International Energy Agency data released earlier in the month placed global oil supply at 103.2 million barrels per day in June, exceeding demand by roughly 1.1 million barrels per day and adding to a stock overhang that has weighed on prices throughout the quarter. The Paris-based agency forecast demand growth of 950,000 barrels per day for the full year 2026, down from an earlier projection of 1.1 million barrels as manufacturing activity in Europe and Asia showed signs of slowing. These estimates provided context for the Tuesday retreat that left Brent roughly 6 percent below its peak reached in early April.
Organization of the Petroleum Exporting Countries figures show the group’s collective output stood at 27.6 million barrels per day in June following voluntary cuts by several members aimed at balancing the market. Saudi Arabia, the group’s largest producer, maintained its output at 9 million barrels per day while extending additional voluntary reductions through September. The cartel and its allies are scheduled to review production quotas at a ministerial meeting set for early August, an event that traders cited as a potential catalyst for renewed volatility.
Reuters market analysis published Tuesday noted that the U.S. dollar index climbed 0.3 percent against a basket of major currencies, making dollar-denominated commodities more expensive for buyers using other currencies and further pressuring oil futures. Open interest in Brent contracts rose modestly while trading volumes remained above the 30-day average, signaling sustained participation from hedge funds and commodity trading advisers. The same analysis placed the year-to-date loss for Brent at 2.8 percent through Tuesday’s close.
Energy consultancy Wood Mackenzie projected in its July 2026 outlook that global refining margins would average $4.50 per barrel for the remainder of the year, down from $6.20 in the first half as new capacity in the Middle East and Asia comes online. The Edinburgh-based firm also estimated that floating storage utilization had fallen to 48 million barrels from 62 million at the start of the year, reflecting tighter commercial inventories despite the recent U.S. build. These trends were referenced in post-settlement commentary that attributed part of Tuesday’s dip to positioning ahead of official U.S. government inventory data due Wednesday.
