02:58 PM EDT, 08/13/2025 (MT Newswires) -- Commercial crude stockpiles in the US unexpectedly increased last week as propane, propylene and distillate fuel inventories grew, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, rose by 3 million barrels to 426.7 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a draw of 912,000 barrels in a survey compiled by Bloomberg.

Propane and propylene inventories increased by 3.9 million barrels, while distillate fuel added 700,000 barrels. Motor gasoline stocks dropped by 800,000 barrels. Total commercial petroleum added 7.5 million barrels. Gasoline and distillate fuel production rose last week, according to the report.

West Texas Intermediate crude was down 1.1% at $62.50 a barrel in Wednesday late-afternoon trade, while Brent fell 0.9% to $65.51.

The International Energy Agency cut its projections for global oil demand growth for 2025 and 2026, while raising its supply forecasts for both years on the back of the latest output hike by certain members of the Organization of the Petroleum Exporting Countries and its allies, collectively known as the OPEC+.

"The latest data show lackluster demand across the major economies and, with consumer confidence still depressed, a sharp rebound appears remote," the IEA said Wednesday in its latest monthly report. "Oil market balances look ever more bloated as forecast supply far eclipses demand towards year-end and in 2026."

Earlier this month, eight OPEC+ members agreed to increase oil production by 547,000 barrels a day in September, fully unwinding their previously announced voluntary output cuts of 2.2 million barrels per day.

US President Donald Trump is scheduled to meet with his Russian counterpart, Vladimir Putin, Friday. Trump recently announced an additional 25% tariff on imports from India in response to the Asian country's continued purchasing of sanctioned Russian oil.

The outcome of the meeting could remove "some of the sanction risk hanging over the market," ING Bank said in a report published Wednesday.

On Tuesday, the OPEC raised its global oil demand projection for 2026 and upgraded its world and US economic growth forecasts for this year.