Written by The Banking Post
Oil prices fell again on Thursday, extending the previous session’s steep losses, as rising US crude inventories and fresh OPEC forecasts of a supply surplus weighed on market sentiment.
Brent crude dropped 9 cents to $62.62 a barrel by 03:36 GMT, following a 3.8% fall the day before. US West Texas Intermediate (WTI) crude slipped 11 cents to $58.38, extending Wednesday’s 4.2% decline.
Market sources said US crude stockpiles rose by 1.3 million barrels in the week ending November 7, according to data from the American Petroleum Institute (API). However, gasoline and distillate inventories declined during the same period.
The price slide accelerated after the Organization of the Petroleum Exporting Countries (OPEC) projected that global oil supply will slightly exceed demand in 2026, reversing earlier forecasts of a deficit.
“OPEC’s latest report acknowledges the possibility of a supply glut in 2026, a shift from its previously bullish stance,” said Suvro Sarkar, an energy analyst at DBS Bank. “While this represents a more realistic reading of the market, the reaction seems somewhat overdone.”
The forecast comes as OPEC+, which includes allies like Russia, gradually increases output following earlier production cuts.
“OPEC’s signal of a surplus unleashed bearish sentiment, and the US inventory build added more pressure,” said Yang An, an analyst at Haitong Securities.
Adding to the pessimism, the US Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook that US oil production will hit a higher record this year than previously expected. It also projected that global inventories will continue to grow through 2026 as production outpaces demand.
Despite the bearish outlook, analysts said prices are unlikely to fall much further. “There should be considerable support around $60 a barrel, especially if Russian export flows face disruptions from stricter sanctions,” Sarkar noted.
The official EIA inventory data is expected later Thursday, which could set the tone for the market’s next move.
