Oil prices decline amid a sell-off in financial markets.

Oil prices fell on Wednesday amid a broad sell-off in global financial markets that highlighted concerns about economic growth and fuel demand, while worries were exacerbated by a rising dollar and reports of increased U.S. crude inventories.

Brent crude futures fell 36 cents, or 0.56 percent, to $64.08 a barrel by 0221 GMT. U.S. West Texas Intermediate crude futures dropped 40 cents, or 0.66 percent, to $60.16, extending losses for both benchmarks since Tuesday.

Oil markets fell amid a broader decline in stock markets, as Asian stock markets on Wednesday followed Wall Street's overnight slide as concerns spread about overvalued stocks, particularly those of companies linked to artificial intelligence.

Risk aversion has led to a rise in the dollar against other major currencies. A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies, which could affect demand.

Tony Sycamore, a market analyst at IG, said in a note that crude oil is trading lower... as risk appetite turned sharply bearish, boosting the dollar as a safe haven, and both factors have put pressure on the price of crude oil.

Prices also came under pressure after market sources, citing figures from the American Petroleum Institute on Tuesday, said that U.S. crude inventories rose by 6.52 million barrels in the week ending October 31.

Concerns about supply continue to weigh on prices. The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, agreed on Sunday to increase production by 137,000 barrels per day in December.

The alliance decided to temporarily suspend increases in the first quarter of 2026. However, analysts at the London Stock Exchange Group said in a note that the suspension is unlikely to provide significant support for November and December prices.

OPEC itself added only 30,000 barrels per day to its production in October compared to the previous month, as previously agreed increases in OPEC+ were offset by declines in Nigeria, Libya and Venezuela.