Oil futures slid to two-month lows on Wednesday after U.S. government data showed crude inventories climbed by roughly three million barrels last week, the biggest build since early June. West Texas Intermediate briefly dipped below $63 a barrel and Brent fell under $65 before paring losses in late Asian trading. The inventory surprise came alongside the International Energy Agency’s latest monthly report, which warned that global oil supply could outpace demand by a record 2.96 million barrels a day in 2026. The Paris-based watchdog cited faster-than-expected production growth from OPEC+ and non-OPEC producers such as the United States, Brazil and Guyana, while forecasting demand growth this year and next at less than half the 2023 pace. Prices regained some ground early Thursday, with Brent at about $65.90 and WTI near $62.90, as traders factored in geopolitical risk ahead of Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska. The White House has threatened “severe consequences,” including potential new sanctions, if Moscow fails to make progress on Ukraine, adding uncertainty to Russian supply flows. Even after the modest rebound, crude is down roughly 12% since January. Analysts say the combination of swelling inventories, the IEA’s oversupply outlook and OPEC+ production increases is likely to cap rallies unless sanctions or unexpected supply disruptions tighten the market.