Oil Rises More Than 3% as Markets Assess U.S. Inventory Data and OPEC+ Supply Outlook

VG Markets · 2026-07-29T02:33:17Z
Oil Rises More Than 3% as Markets Assess U.S. Inventory Data and OPEC+ Supply Outlook

Oil prices rose more than 3% in early Wednesday trading, recovering part of Tuesday's decline as markets assessed lower U.S. crude inventories alongside reports regarding OPEC+ production plans, while continuing to monitor developments surrounding the U.S. and Iran.

Price action

  1. Brent crude futures rose $2.71 to $86.80 per barrel.
  2. WTI crude gained $2.26 to $81.95 per barrel.
  3. Both benchmarks have remained volatile amid continued attention on shipping conditions in the Strait of Hormuz.

Supply developments

  1. According to Reuters, citing American Petroleum Institute data, U.S. crude inventories declined by approximately 3.3 million barrels during the week ended July 24. Official EIA data are scheduled for release later Wednesday.
  2. Gasoline inventories increased by 918,000 barrels, while distillate inventories rose by 355,000 barrels.
  3. Reuters also reported, citing sources, that OPEC+ is considering a three-month pause in planned production increases beginning in October after completing its scheduled unwinding of voluntary output cuts.

Geopolitical developments

  1. U.S. President Donald Trump said a planned military operation had been called off and described recent discussions with Iran positively, while also stating that further action could be considered if negotiations fail.
  2. Iranian officials said the country is not seeking to resume negotiations. The differing statements highlight continued uncertainty surrounding diplomatic developments.
  3. Reports also indicated that Oman has presented Iran with a proposal related to shipping management in the Strait of Hormuz aimed at supporting normal maritime trade.

For Southeast Asian market participants

Recent price swings highlight continued market sensitivity to geopolitical developments and supply-related news. Market participants are expected to closely monitor the official EIA inventory report and further developments in the Middle East.

Sources: Reuters, American Petroleum Institute, U.S. Energy Information Administration.