Oil prices moved slightly lower on Thursday, continuing the decline from the previous session. A new report showing higher U.S. crude inventories increased concerns that global supply is more than enough to cover current fuel demand.
Brent crude futures held steady at $62.71 a barrel at 0645 GMT, after a sharp 3.8% drop the day before. U.S. West Texas Intermediate (WTI) crude slipped 3 cents to $58.46 a barrel, adding to Wednesday’s 4.2% fall.
According to market sources citing American Petroleum Institute (API) data, U.S. crude stocks rose by 1.3 million barrels in the week ending November 7. Gasoline and distillate inventories fell during the same period, the API figures showed.
Prices dropped more than $2 a barrel on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) reported that global supply will slightly exceed demand in 2026. This marked a shift from earlier forecasts that pointed to a supply deficit.
Suvro Sarkar, energy sector lead at DBS Bank, said recent price weakness is linked to OPEC’s updated view on the 2026 market balance. The revision suggests a possible oversupply, a notable change from the group’s previously bullish stance.
He added that the decision to pause the unwinding of voluntary production cuts in the first quarter supports this more cautious outlook. Sarkar noted that fundamentals have not changed, and the market reaction may be stronger than justified.
OPEC said the projected surplus comes from larger output increases across OPEC+, which includes the group’s members and allies such as Russia.
Yang An, an analyst at Haitong Securities, said OPEC’s signal of a surplus triggered bearish sentiment. Combined with a rise in U.S. crude inventories, it pushed oil prices lower again on Thursday.
The U.S. Energy Information Administration (EIA) is expected to release official inventory data later on Thursday. Additional reports on Wednesday also contributed to a more negative market outlook.
The EIA said in its latest Short-Term Energy Outlook that U.S. oil production will hit a larger record this year than previously forecast. It also expects global oil inventories to rise through 2026, as supply grows faster than demand, adding more pressure to prices.
Some analysts believe prices will hold near current levels. Sarkar noted that oil should find support around $60 a barrel, especially with the possibility of short-term disruptions to Russian exports once tighter sanctions take effect.
