03:39 PM EDT, 08/06/2025 (MT Newswires) -- Commercial crude stockpiles in the US unexpectedly fell last week as motor gasoline and distillate fuel inventories shrank, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, dropped by 3 million barrels to 423.7 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for the stockpiles to be steady in a survey compiled by Bloomberg.

Motor gasoline stocks dropped by 1.3 million barrels, while distillate fuel declined by 600,000 barrels. Propane and propylene inventories rose by 1.3 million barrels. Total commercial petroleum added 2.1 million barrels. Gasoline and distillate fuel production fell last week, according to the report.

West Texas Intermediate crude was down 1.9% at $63.92 a barrel in Wednesday late-afternoon trade, while Brent fell 1.7% to $66.46. Both benchmarks were on track to extend their daily losses.

Over the weekend, eight members of the Organization of the Petroleum Exporting Countries and its allies -- collectively known as the OPEC+ -- agreed to increase oil production by 547,000 barrels a day next month.

"The global crude oil market continues to navigate a complex web of supply pressures and geopolitical crosswinds, with prices holding up surprisingly well despite expectations of an emerging supply glut once the peak summer demand season comes to an end, driven by rising OPEC+ output and fading global demand growth amid tariff-related demand concerns," Saxo Bank Head of Commodity Strategy Ole Hansen said in a report published Wednesday.

Secondary sanctions against Russia are still expected to be implemented Friday even as a meeting between US special envoy Steve Witkoff and Moscow "went well," CNN reported Wednesday, citing a White House official.

US President Donald Trump recently imposed a deadline on Russia to agree to a ceasefire with Ukraine or face tough secondary sanctions.

On Wednesday, Trump signed an executive order imposing an additional 25% tariff on imports from India in response to the Asian country's continued purchasing of sanctioned Russian oil.

"A meaningful drop in Indian demand for Russian oil would leave a large gap in the market and potentially tighten global supply, keeping prices supported," Hansen said.