Oil prices dropped on Wednesday, August 13, 2025, after the International Energy Agency (IEA) noted supply overtaking demand this year.
This is just as investors await Friday’s meeting between United States President Donald Trump and Russian President Vladimir Putin.
Brent crude futures fell 41 cents, or 0.6%, to $65.71 a barrel by 1037 GMT, while U.S. West Texas Intermediate crude futures edged down 50 cents, or 0.8% to $62.67.
Both contracts settled lower on Tuesday.
“The API oil inventory report last night, together with a dovish oil market outlook from the IEA today, weighed on prices,” said UBS commodity analyst Giovanni Staunovo.
Dangote refinery reduces petrol price
The IEA on Wednesday raised its forecast for oil supply growth this year but lowered its demand forecast due to lacklustre fuel demand across the major economies.
Meanwhile, in its monthly report on Tuesday, OPEC+ raised its global oil demand forecast for next year and trimmed estimates of supply growth from the United States and other producers outside the wider group, pointing to a tighter market.
Independent energy analyst Gaurav Sharma told Reuters: “Were we to take an aggregate of the respective IEA and OPEC oil demand growth projections for 2025 at their respective bearish and bullish ends, even a modest middle figure say just north of 1 million bpd can easily be serviced by non-OPEC supply growth alone at the moment.
“So, I don’t see a bullish case for oil over the near-term horizon.”
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