Oil prices fall on concerns over weakening demand

Oil prices extended losses on Wednesday as growing concerns about slowing global economic growth and weaker fuel demand continued to drag the market down. According to Reuters, uncertainty over US tariff policy is putting pressure on prices.

ANZ's Daniel Hynes suggests the recent strength in US economic data was merely a short-term boost from stockpiling ahead of the duties. Now, that effect seems to be fading, the analyst notes. US consumer sentiment dropped in April to near a five-year low as tariff concerns grew.

Meanwhile, data from the American Petroleum Institute shows US crude oil inventories surged by 3.8 million barrels last week. The Energy Information Administration is set to release its figures later Wednesday. Analysts surveyed by Reuters expect an 400,000 barrel increase in US crude oil stocks over the same period.

Oil prices face additional downward pressure as OPEC+ considers raising production. According to Reuters sources, some alliance members may propose increasing output in June. This move could deepen the current market glut.