Oil Prices Decline for Second Consecutive Session Amid Global Supply Concerns
Oil prices declined for a second consecutive session on Thursday, influenced by market concerns that global supply could surpass actual demand, following a report that revealed an increase in U.S. crude 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 (WTI) futures decreased by five cents, or 0.09%, to $58.44 per barrel, adding to the losses from Wednesday's 4.2% decline.
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 during the week ending November 7." They also noted that "gasoline and distillate inventories saw a decline."
Additionally, 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 estimates that anticipated a supply deficit. OPEC also projected "a surplus next year, supported by increased production from more OPEC+ countries."
In this context, nine analysts surveyed by Reuters predict "an increase in U.S. inventories of approximately two million barrels on average."
The U.S. Energy Information Administration (EIA), in its short-term energy outlook, indicated that "U.S. oil production is set to reach a record high this year, exceeding previous estimates."
Market participants are now awaiting official inventory data from the EIA, which will be released later on Thursday, providing further insight into supply and demand trends.
