Oil prices declined on Thursday, pressured by renewed concerns of a global supply glut and weaker demand signals in the United States, the world’s largest oil consumer. Brent crude fell 14 cents, or 0.22%, to $63.38 per barrel, while WTI slipped 17 cents, or 0.29%, to $59.43. Both benchmarks have now posted three consecutive monthly declines as OPEC+ continues to raise output amid expanding non-OPEC production.
“The market keeps being haunted by the best-telegraphed supply glut in history,” said Again Capital’s John Kilduff, noting that rising global production remains a persistent headwind for prices.
U.S. demand trends also weighed on sentiment. JPMorgan said global oil demand increased by 850,000 bpd through early November — below its prior forecast of 900,000 bpd — with “high-frequency indicators” pointing to sluggish U.S. consumption and soft freight activity.
Earlier in the week, EIA data showed a 5.2 million-barrel build in U.S. crude stocks, underscoring weak refinery runs during the fall maintenance season. “There isn’t strong demand for crude right now — that’s fundamentally weighing on prices,” Kilduff added.
On the supply side, Saudi Arabia cut December prices for Asian buyers, reflecting a well-supplied market as OPEC+ increases output. Analysts at Capital Economics maintained a $60 Brent forecast by end-2025 and $50 by end-2026, citing persistent downside pressure.
Lingering support came from recent U.S. sanctions on Russian producers Rosneft and Lukoil, which have disrupted parts of their international operations. Analysts said the market remains cautious about how long those disruptions will offset rising global supply.