Oil Prices Decline Amid Global Market Selloff and Stronger U.S. Dollar

Oil prices fell on Wednesday as global financial markets experienced a broad selloff fueled by concerns over economic growth and weakening fuel demand. The stronger U.S. dollar and reports of rising crude inventories in the United States added further pressure on prices.

Brent crude futures dropped 36 cents, or 0.56%, to $64.08 a barrel by 0221 GMT, while U.S. West Texas Intermediate (WTI) crude slipped 40 cents, or 0.66%, to $60.16. Both benchmarks extended losses from the previous session, mirroring declines in global equities.

Asian stock markets followed Wall Street’s overnight slump as investors grew increasingly cautious about stretched stock valuations—especially in sectors tied to artificial intelligence. The risk-off sentiment lifted the U.S. dollar against other major currencies, making dollar-denominated oil more expensive for foreign buyers and dampening demand.

“Crude oil is trading lower as risk sentiment shifted sharply negative, boosting the safe haven U.S. dollar, both of which weighed on crude prices,” said Tony Sycamore, market analyst at IG.

Adding to the bearish outlook, the American Petroleum Institute (API) reported that U.S. crude inventories rose by 6.52 million barrels for the week ending October 31, signaling weaker demand and higher supply.

On the production side, OPEC+—the alliance of the Organization of Petroleum Exporting Countries and its allies—agreed to increase output by 137,000 barrels per day in December. The group also announced it would pause further hikes during the first quarter of 2026, though analysts at LSEG noted this move is unlikely to provide significant support for near-term prices.

OPEC’s own output in October rose modestly by 30,000 barrels per day, as gains were offset by declines in Nigeria, Libya, and Venezuela.

Overall, the combination of economic uncertainty, a stronger dollar, and rising inventories continues to weigh on oil market sentiment, keeping both Brent and WTI under pressure.