Oil prices fell as "OPEC+" production recovered and economic concerns escalated.

Oil markets witnessed a decline in prices on Wednesday, June 4th, influenced by conflicting factors including an increase in supply by the "OPEC+" alliance and escalating concerns about global economic prospects amid ongoing trade tensions between the United States and China.

Brent crude recorded a slight decrease of 19 cents (0.2%) to settle at $65.44 per barrel, while West Texas Intermediate crude fell by 22 cents (0.3%) to $63.19 per barrel.

This decline followed strong gains made by both crudes yesterday, reaching about 2%, supported by concerns related to supply disruptions due to wildfires in Canada and expectations of Iran rejecting a U.S. proposal regarding the nuclear agreement.

Tatsuishi Owino, chief economist at the "N.L.I." research institute, explained that oil markets are struggling to maintain their gains despite prevailing concerns, pointing out that the increase in "OPEC+" production is exerting downward pressure on prices.

Owino also highlighted diminishing hopes for progress in U.S.-China trade talks amid profit-taking and investor fears of the economic growth implications of tariffs.

In a related context, U.S. President Donald Trump is scheduled to hold talks with his Chinese counterpart Xi Jinping this week, following days of accusations between the two countries regarding a customs agreement violation reached last month.

This coincides with the Organization for Economic Cooperation and Development lowering its global growth forecasts, warning of worsening negative effects of the trade war on the U.S. economy.

On another note, wildfires in Canada continue to support prices, leading to oil production disruptions and the evacuation of thousands of residents since the beginning of May.

Data from the American Petroleum Institute showed a decrease in crude inventories by 3.3 million barrels last week, while gasoline and distillate inventories witnessed significant increases.

The market is now awaiting official data from the U.S. Energy Information Administration, which may confirm further inventory declines, while prices remain under the influence of a complex equation combining supply and demand concerns with geopolitical developments.