WTI Under Pressure As US Stockpiles Jump, OPEC+ Signals Supply Increase

West Texas Intermediate (WTI) trades under pressure on Wednesday as a larger-than-expected US crude inventory build and expectations of higher OPEC+ output fuel renewed oversupply worries. At the time of writing, the US benchmark is trading around $65.45, down nearly 1.25%.

Fresh data from the US Energy Information Administration (EIA) showed Crude Oil Inventories surged by 15.989 million barrels last week, sharply reversing the prior 9.014 million barrel draw. The increase marked the largest weekly build since February 2023.

The downside also reflects cautious repositioning ahead of the US-Iran nuclear talks scheduled in Geneva on Thursday. Investors are closely monitoring the situation, as a breakdown in negotiations could heighten the risk of US military action amid a significant buildup of American forces in the region.

Any escalation could disrupt supply through the Strait of Hormuz and push WTI higher, adding a fresh geopolitical risk premium to markets. Earlier in the day, US President Donald Trump said during his State of the Union address that his preference is to resolve the Iran nuclear issue through diplomacy.

Meanwhile, Iran’s Deputy Foreign Minister Abbas Araghchi said on Tuesday that Tehran is ready to take the necessary steps to reach an agreement with the US.

A Reuters report published earlier on Wednesday said Saudi Arabia is ramping up oil production and exports as a precautionary measure in case a potential US strike on Iran disrupts Middle Eastern supply flows, citing two sources familiar with the plan.

In a separate development, OPEC+ delegates expect the group to resume modest supply increases at its March 1 meeting. According to Reuters, three sources familiar with the matter said the alliance is likely to consider raising output by about 137,000 barrels per day in April.