Oil prices were largely unchanged early Thursday, stabilizing after a two-week low in the previous session. Brent crude futures edged up 2 cents, or 0.03%, to $63.54 a barrel, while U.S. West Texas Intermediate (WTI) remained flat at $59.60. The muted movement reflects ongoing pressure from global oversupply and subdued demand, which continue to weigh on market sentiment.
According to J.P. Morgan, global oil demand has risen by 850,000 barrels per day (bpd) year-to-date through November 4—slightly below the bank’s earlier projection of 900,000 bpd. In a client note, the bank cited weak travel activity and lower container shipments as signs that U.S. consumption remains soft. “High-frequency indicators suggest that U.S. oil consumption remains subdued,” the note stated.
The latest inventory data from the U.S. Energy Information Administration added to bearish sentiment. Crude stocks rose by 5.2 million barrels last week, reaching 421.2 million barrels—far exceeding expectations for a 603,000-barrel increase. The surprise build triggered a sell-off in the previous session and reinforced concerns about near-term supply-demand imbalances.
Capital Economics echoed this cautious outlook, forecasting Brent crude to average $60 per barrel by the end of 2025 and $50 by the end of 2026. “We think that downward pressure on oil prices will prevail,” the firm noted, citing persistent oversupply and fragile demand recovery.
Oil Prices Affected by OPEC+ Declines
October marked the third consecutive monthly decline in global oil prices, driven by rising output from both OPEC and non-OPEC producers. The Organization of the Petroleum Exporting Countries and its allies have steadily increased production, while non-OPEC supply growth—particularly from the U.S. and Brazil—continues to add barrels to the market.
As traders look ahead, market direction will hinge on upcoming macroeconomic data, OPEC+ policy signals, and geopolitical developments. With spare capacity still ample and demand indicators soft, the path to price recovery remains uncertain.
Read: Oil Prices Slip as Sanctions Doubts and OPEC+ Signals Weigh on Market
