Oil prices steadied in early trade on Wednesday after two straight sessions of declines, as traders weighed the potential for a larger OPEC+ output hike against signs of tightening U.S. crude supplies. Brent crude futures for December delivery inched up 12 cents to $66.15 a barrel, while U.S. West Texas Intermediate (WTI) crude also rose 12 cents to $62.49.
Both benchmarks had suffered sharp drops earlier in the week, with Brent and WTI tumbling more than 3% on Monday—their steepest fall since August 1—followed by another decline of at least 1.5% on Tuesday.
Market sentiment was supported by expectations of shrinking U.S. crude inventories. According to estimates from the American Petroleum Institute (API), crude stocks fell by 3.67 million barrels for the week ending September 26. At the same time, gasoline inventories rose by 1.3 million barrels and distillate stocks increased by 3 million barrels. The drawdown in crude helped prevent deeper losses in oil prices.
Attention also remains on OPEC+ policy. Sources familiar with internal talks revealed that the group, which supplies nearly half of the world’s oil, may raise production by as much as 500,000 barrels per day (bpd) in November—triple October’s hike. Saudi Arabia, in particular, is said to be pushing to regain market share. Some members reportedly discussed increases ranging from 274,000 to 411,000 bpd, though others suggested the output boost could reach 500,000 bpd.
However, OPEC later clarified in a post on X (formerly Twitter) that media reports about a 500,000 bpd hike were “misleading,” adding uncertainty to the market.
Beyond oil, geopolitics also played a role in investor sentiment. In Washington, U.S. President Donald Trump secured Israeli Prime Minister Benjamin Netanyahu’s backing for a U.S.-sponsored Gaza peace proposal, though the response from Hamas remained unclear.
The combination of falling U.S. crude inventories, OPEC+ production signals, and geopolitical developments will likely continue to influence oil market direction in the coming weeks.