Oil prices slide: Brent and WTI slip after three days of gains, with markets reassessing demand in Asia, US stock data, growth concerns

Oil prices pulled back in Asian trade Wednesday, reversing a three-session climb as markets took stock of shifting demand cues and persistent worries about global economic growth.

As of 11 am Tokyo time, both major benchmarks were softer, with traders digesting mixed signals from economic data and ongoing geopolitical developments.

The retreat follows a run of gains earlier this week that had been supported by supply concerns and optimism about sustained fuel demand.

Brent crude futures lost 73 cents, or 0.73%, to trade at $107 a barrel at 0051 GMT, and U.S. West Texas Intermediate futures fell 62 cents, or 0.61%, to $101.6 at 11am Tokyo time on Wednesday (May 13, 2026).

Analysts said the sell-off reflects a combination of factors:

• Technical profit taking after oil’s recent ascendancy, as Brent and West Texas Intermediate had climbed steadily in prior sessions.

• Signs of softer demand in key markets, especially parts of Asia. Recent purchasing figures from China — the world’s largest crude importer — showed slower fuel demand growth than expected, prompting some traders to reassess near-term consumption forecasts.

• Mixed inventory data in the United States, where weekly stock reports showed inventories remaining above seasonal norms despite draws in some categories. That lessened urgency around OPEC+ production restraint narratives.

• Geopolitical steadiness, where tensions in the Middle East and other supply-risk hotspots remained elevated but without fresh escalatory events to push prices higher.

While the current pullback has trimmed some of this week’s earlier advances, most analysts still view the longer trend as tilted toward firm pricing unless demand indicators deteriorate further.

Oil markets are notoriously sensitive to shifts in economic data, currency moves, and geopolitical headlines.

Prices remained subject to rapid intraday swings as markets await updated inventory figures later this week and fresh data from global economic centers.

Energy analysts pointed out that physical crude premiums have collapsed from more than $30 above Brent to near parity as refiners delay purchases, draw down inventories, cut refinery runs, and rely on strategic reserve releases despite the ongoing Strait of Hormuz disruption.

They also noted a sharp drop in China’s crude imports, early refinery maintenance, while US crude exports have hit a fresh record, temporarily eased pressure on physical markets.

The relief, however, may be "short-lived". Analysts warn that with buffers rapidly thinning ahead of peak summer demand, this raises the risk of another sharp spike in both physical and paper oil prices if the Strait of Hormuz remains closed.