Oil Stabilizes Amid Economic Pressures and Rising U.S. Inventories
Oil prices stabilized in today's Wednesday trading, amid rising concerns about a slowdown in global economic growth and declining fuel demand, at a time when market pressures increased due to the rising dollar and reports of an increase in U.S. crude inventories.
Brent crude futures recorded $64.41 per barrel unchanged, while U.S. West Texas Intermediate crude contracts fell by 0.1% to $60.49, continuing their losses since Tuesday's session.
This weak performance of oil coincided with a broad decline in global stock markets, as Asian markets followed the sharp declines seen on Wall Street in the previous session, amid growing concerns about overvaluation of stocks, especially those related to the artificial intelligence sector.
In this context, Tony Sycamore, a market analyst at IG, said in a research note reported by Reuters: "Crude oil is trading clearly lower, amid a decline in risk appetite and a rising dollar as a safe haven, which has created a double pressure factor on prices."
The rise of the dollar against major currencies has reduced the attractiveness of dollar-denominated oil for holders of other currencies, which may limit global demand for crude.
Additionally, data from the American Petroleum Institute showed that crude inventories in the United States rose by 6.52 million barrels during the week ending October 31, adding further pressure on the market.
Regarding supplies, concerns related to supply continue to overshadow investor sentiment, as the OPEC+ alliance announced on Sunday plans to increase production by 137,000 barrels per day in December, with a temporary suspension of any additional increases during the first quarter of 2026.
In an analytical note, analysts at the London Stock Exchange Group indicated that "this suspension is unlikely to provide significant support for prices during November and December."
