Oil Prices Continue Decline Amid Concerns of Global Supply Surplus
Oil prices declined for a second straight session on Thursday, influenced by market concerns that global supply could surpass actual demand, following a report that highlighted a rise in U.S. inventories.
As of 02:34 GMT, Brent crude futures fell by three cents, or 0.03%, to $62.69 per barrel, following a significant drop of 3.8% in the previous session.
Similarly, West Texas Intermediate futures decreased by five cents, or 0.09%, to $58.44 per barrel, marking additional losses after a 4.2% decline on Wednesday.
Market sources, citing data from the American Petroleum Institute released on Wednesday, reported that "U.S. crude inventories rose by approximately 1.3 million barrels in the week ending November 7." They also noted that "gasoline and distillate stocks declined."
The latest monthly report from the Organization of the Petroleum Exporting Countries (OPEC) contributed to the selling pressure, indicating that "global supply is expected to slightly exceed demand by 2026," a shift from previous forecasts that anticipated a supply shortfall. OPEC also predicts "a surplus in supply next year, bolstered by increased production from a larger number of OPEC+ countries."
In this context, nine analysts surveyed by Reuters anticipated "an average increase of about two million barrels in U.S. inventories."
The Energy Information Administration (EIA) stated in its short-term energy outlook that "U.S. oil production is expected to reach record levels this year, exceeding previous estimates."
Market participants are now awaiting the official inventory data, which the EIA will release later on Thursday, expected to provide clearer insights into supply and demand trends.
