Oil prices rose on Thursday amid easing oversupply concerns after closing at two-week lows in the previous session on the back of falling demand, UNN reports with reference to Reuters.
Details
Brent crude futures rose 17 cents, or 0.27%, to $63.69 a barrel by 04:55 GMT (06:55 Kyiv time), while U.S. West Texas Intermediate crude futures rose 18 cents, or 0.3%, to $59.78.
Global oil prices fell for a third consecutive month in October amid oversupply concerns as the Organization of the Petroleum Exporting Countries and its allies increased production, while non-OPEC output also continued to rise.
However, after U.S. and UK sanctions on major Russian oil companies eased the market's aggressive bearish sentiment two weeks ago, there was a shift in oil price dynamics at the end of October, according to Haitong Securities.
OPEC+'s plan to pause further production increases in the first quarter of next year has also partially eased oversupply concerns, according to Haitong Securities.
However, concerns about weak demand persist.
Global oil demand has grown by 850,000 barrels per day year-to-date as of November 4, which is below J.P. Morgan's previously forecast growth of 900,000 barrels per day, the bank said in a client note.
"High-frequency indicators suggest that U.S. oil consumption remains low," the note said, pointing to weak tourism activity and declining container shipping volumes.
In the previous session, oil prices fell after the U.S. Energy Information Administration reported that U.S. crude inventories rose by 5.2 million barrels to 421.2 million barrels last week, compared with forecasts for a 603,000-barrel increase.
"We believe that downward pressure on oil prices will persist, supporting our below-consensus forecast of $60 a barrel by the end of 2025 and $50 a barrel by the end of 2026," Capital Economics said in a note.
Saudi Arabia, the world's largest oil exporter, sharply cut prices for its oil to Asian buyers in December, reacting to high supply levels in the market due to increased production by OPEC+ countries.
US sanctions reduced the number of buyers of Russian oil in China – Bloomberg03.11.25, 17:57