Oil prices rose slightly on Wednesday after the Organisation of the Petroleum Exporting Countries (OPEC) raised its 2026 demand forecast, with bilateral talks between the United States and Russia also due this week.
Brent crude futures were up 0.11% to US$66.19 as of 3:10 pm AEST (5:10 am GMT), while West Texas Intermediate was up 0.06% to $63.21.
OPEC lifted its 2026 global oil demand forecast in its monthly report, projecting it will rise by 1.38 million barrels per day next year.
The bloc’s 2025 projection remains unchanged at 1.3 million barrels per day m(bpd).
OPEC also revised its 2026 production growth forecast from non-OPEC nations down by 100,000 barrels per day, and now expects an average year-over-year increase of 600,000 barrels per day.
The United States Energy Administration (EIA) is also set to release its weekly inventory report in the coming hours. The EIA said this week that it expects Brent spot prices will fall to $58 in 2025's fourth quarter, down from an average of above $70 per barrel in July.
Meanwhile, U.S. President Donald Trump will meet Russian President Vladimir Putin in Alaska on Friday to discuss a potential end to Russia’s invasion of Ukraine. Russia’s economy has struggled in recent months, partly due to a slump in its oil revenues, and the U.S. has said it will raise tariffs on countries like India that purchase Russian oil.
“It is unlikely that Trump will impose secondary tariffs on other countries besides India for their purchases of Russian oil before his meeting with Putin,” wrote Commerzbank commodity analyst Carsten Fritsch.
“If Friday's meeting brings a ceasefire or even a peace deal in Ukraine closer, Trump could suspend the secondary tariffs imposed on India last week before they come into force in two weeks. If not, we could see tougher sanctions against other buyers of Russian oil, like China.”
