Oil prices edged down on Thursday, extending losses from the previous session, after data showing a rise in US crude inventories reinforced concerns that global supply remains more than sufficient to meet current fuel demand.
Brent crude futures were unchanged at $62.71 a barrel at 0645 GMT after falling 3.8% on Wednesday. US West Texas Intermediate (WTI) crude slipped 3 cents to $58.46 a barrel, extending a 4.2% drop from the previous session.
According to market sources citing American Petroleum Institute (API) data, US crude stockpiles rose by 1.3 million barrels in the week ending November 7, while gasoline and distillate inventories declined.
Prices fell sharply on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said global oil supplies are expected to slightly exceed demand in 2026, marking a shift from earlier projections of a deficit.
“Recent weakness seems to be driven by OPEC’s revision of the supply-demand balance in 2026, confirming the group now acknowledges a potential supply glut,” said Suvro Sarkar, energy sector lead at DBS Bank. “This is a more realistic market reading, so the market reaction seems overdone.”
OPEC said the surplus stems from wider production increases among OPEC+ members, including Russia. Analysts said the group’s revised outlook, combined with higher US inventories, has weighed on market sentiment.
The US Energy Information Administration (EIA), due to release official inventory data later Thursday, also said in its latest report that US oil production is set to reach a larger record this year than previously forecast, and that global inventories will continue to grow through 2026 as production outpaces demand.
Despite bearish pressures, analysts expect prices to find support near current levels.
“There should be considerable support to oil prices around $60 per barrel, especially given possible short-term disruption to Russian export flows once stricter sanctions take effect,” Sarkar added.
— Reuters
Oman Observer is now on the WhatsApp channel. Click here
