Oil prices dipped on Thursday, 13th November, continuing losses from the previous session as increasing crude inventories in the U.S. heightened concerns about a global oversupply. By 0953 GMT, Brent crude futures were down 20 cents to $62.51 per barrel, following a significant drop of 3.8% the previous day. Similarly, U.S. West Texas Intermediate crude fell by 24 cents to $58.25 per barrel, extending its decline of 4.2% from Wednesday. Reports indicated that U.S. crude stockpiles rose by 1.3 million barrels for the week ending November 7, according to American Petroleum Institute data.
UBS analyst Giovanni Staunovo noted a buildup in oil inventories at key locations across Europe, Singapore, Fujairah, and the U.S. Prices had already fallen over $2 per barrel after the Organization of the Petroleum Exporting Countries (OPEC) projected that global oil supplies would slightly exceed demand in 2026, contradicting earlier forecasts of a market deficit. DBS Bank’s energy sector team lead, Suvro Sarkar, attributed recent price declines to this shift in OPEC’s outlook.
OPEC also indicated that next year’s surplus would arise due to increased production from the OPEC+ alliance, which includes Russia. The International Energy Agency (IEA) bolstered its global oil supply growth forecasts for this and next year in its monthly market report, reinforcing the anticipation of a larger surplus by 2026. The U.S. Energy Information Administration (EIA) also revised its expectations, predicting record oil production for the year.
Analysts suggest that oil prices may stabilize around current levels. DBS’s Sarkar pointed out that there’s likely to be significant support for prices near $60 per barrel, especially considering potential disruptions to Russian export flows once stricter sanctions are implemented.