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• WTI price extends the decline to near $62.15 in Thursday’s early Asian session. 
• Bearish EIA inventory report and IEA oil surplus forecast weigh on the WTI price. 
• Traders will closely watch the upcoming Trump-Putin meeting later on Friday.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.15 during the early Asian trading hours on Wednesday. The WTI declines to nearly a two-month low due to an unexpected increase in US crude oil supplies and a bearish oil surplus forecast by the International Energy Agency (IEA).

US crude oil inventories unexpectedly rose last week, signaling weaker demand and undermining the WTI price. According to the Energy Information Administration, crude oil stockpiles in the US for the week ending August 8 climbed by 3.036 million barrels, compared to a fall of 3.029 million barrels in the previous week. The market consensus estimated that stocks would decrease by 800,000 barrels. 

Furthermore, the concerns about oversupply in the oil market this year also weigh on the black gold. The International Energy Agency projected oversupply in the market this year due to surging supply from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and non-OPEC+ producers. The IEA on Wednesday released a report forecasting a record global oil surplus of 2.96 million bpd in 2026 due to tepid demand and increased supply.

Oil traders will closely monitor the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska on Friday to discuss the Ukraine issue. Late Wednesday, Trump warned that Russia will face “very severe consequences” if Putin doesn’t agree to end the war in Ukraine during their meeting on Friday. In the absence of further developments between the US and Russia talks could raise the prospect of tighter penalties on Moscow, which might help limit the WTI’s losses in the near term. 

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