Oil rebounds after two weeks of decline.. Concerns about weak demand pressure the market
November 6, 2025238 ViewsRead Time: 2 minutes
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Oil prices rose in Thursday's trading, after a session in which prices fell to their lowest level in two weeks due to ongoing concerns about weak global demand and increased supply.
Price Movements
Brent crude rose by 0.57% to $63.90 a barrel, while U.S. West Texas Intermediate crude increased by 0.77% to $60.05 a barrel at the time of the report.
Market Background
Global oil prices recorded a decline for the third consecutive month in October, amid continued increases in production from OPEC+ and expansion of production from non-allied producers.
Haitong Securities stated that the easing of U.S. and British sanctions on Russian oil companies about two weeks ago contributed to calming the sharp downward trend in the market, and that OPEC+'s plan to halt production increases in the first quarter of 2026 has reduced concerns about oversupply.
Weak demand remains a key factor
However, concerns about declining global demand persist, as a research note from the bank indicated that demand growth from the beginning of the year until November 4 reached 850,000 barrels per day, which is lower than previous expectations of 900,000 barrels per day.
High-frequency indicators show continued weakness in consumption in the United States, with a decline in travel activity and a drop in container shipments.
U.S. Inventory Data
In Wednesday's session, data from the U.S. Energy Information Administration pressured prices after announcing an increase in crude inventories by 5.2 million barrels to 421.2 million barrels, exceeding expectations of an increase of only 603,000 barrels.
Future Estimates
Capital Economics believes that downward pressures will continue throughout next year, predicting that the price of oil will reach around $60 a barrel by the end of 2025, and $50 by the end of 2026.
Saudi Arabia has also significantly reduced its crude prices for Asian buyers for December, amid a market with ample supply as production within OPEC+ continues to rise.
