Oil Prices Slide Amid Concerns of Oversupply
Oil prices fell for the second consecutive session on Thursday, driven by concerns that global supply could surpass demand, following a report indicating an increase in U.S. inventories.
As of 02:34 GMT, Brent crude futures dropped three cents, or 0.03%, to $62.69 per barrel, following a significant decline of 3.8% in the previous session.
West Texas Intermediate futures decreased by five cents, or 0.09%, to $58.44 per barrel, extending losses after a 4.2% drop on Wednesday.
Market sources, referencing data from the American Petroleum Institute released on Wednesday, reported that "U.S. crude inventories rose by approximately 1.3 million barrels during the week ending November 7." They noted that "gasoline and distillate inventories saw a decrease."
Additionally, the latest monthly report from the Organization of the Petroleum Exporting Countries (OPEC) contributed to the downward trend, indicating that "global supply is expected to slightly exceed demand in 2026," a change from earlier forecasts that predicted a supply shortfall. OPEC also anticipates "a surplus in supplies next year, driven by increased production from a broader range of OPEC+ nations."
Nine analysts surveyed by Reuters estimated an average increase in U.S. inventories of about two million barrels.
The Energy Information Administration, in its Short-Term Energy Outlook report, stated that "U.S. oil production is projected to reach a record high this year, surpassing previous estimates."
Market participants are awaiting the official inventory data set to be released by the U.S. Energy Information Administration later on Thursday, which will clarify supply and demand dynamics.
