Oil prices edged lower on Wednesday as growing U.S. crude inventories and easing concerns over Libyan supply exerted downward pressure. Brent crude futures fell 0.2% to $77.31 a barrel, while U.S. crude futures slid 0.2% to $73.62.

Market Analysis

Market analysts noted the balancing act between supply-side pressures and demand dynamics. Priyanka Sachdeva of Phillip Nova remarked, “While markets wrestle with demand concerns, easing supply-side worries are also weighing on oil prices.”

Data from the American Petroleum Institute (API) indicated a rise in U.S. crude and gasoline stockpiles last week, while the Energy Information Administration (EIA) is set to release its official figures later today.

In Libya, the state-run National Oil Corporation confirmed normal export operations after resolving disputes with protesters, alleviating previous supply fears.

Meanwhile, the energy sector remains cautious as U.S. President Donald Trump’s proposed 25% tariffs on Canadian and Mexican imports loom. Canada, which supplies nearly half of U.S. oil imports, and Mexico, with 733,000 barrels per day, are closely monitoring developments.

Adding to market volatility, concerns over weaker energy demand were fueled by China’s disappointing economic data and interest in DeepSeek’s low-cost AI model, which could disrupt energy-intensive data center operations.