Oil prices slipped slightly in early Asian trading on Wednesday, pressured by a softening in the supply-demand balance as OPEC+ ramps up production and global economic concerns persist amid ongoing tariff disputes.
By 0040 GMT, Brent crude futures had fallen 5 cents, or 0.1%, to $65.58 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 9 cents, also 0.1%, to $63.32 per barrel.
Both benchmarks had gained around 2% on Tuesday, reaching two-week highs. The rally was driven by fears of supply disruptions from wildfires in Canada and speculation that Iran may reject a U.S. nuclear proposal, potentially delaying the lifting of sanctions on the major oil exporter.
“Despite fears over Canadian supply and stalled Iran-US nuclear talks, oil markets are struggling to extend gains,” said Tsuyoshi Ueno, senior economist at NLI Research Institute, adding that OPEC+ production increases were capping the upside.
Ueno said hopes for progress in US-China trade talks were overshadowed by profit-taking, as investors remained cautious over the broader economic fallout from tariffs.
US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.
As the Trump administration pressed US trading partners to provide their best offers by Wednesday, the protracted negotiations and moving deadlines have led economists to scale back growth.
