Oil prices rose on Thursday after easing oversupply concerns, following a two-week low in the previous session. Brent crude gained 17 cents, or 0.27 per cent, to $63.69 a barrel, while US West Texas Intermediate (WTI) added 18 cents, or 0.3 per cent, to $59.78. Global oil fell for a third consecutive month in October amid fears of oversupply as OPEC+ and non-OPEC production grew. However, recent US and UK sanctions on Russia's major oil companies, combined with OPEC+'s plan to pause output increases in early 2026, partially eased bearish sentiment. Demand concerns persist, with global oil consumption rising 850,000 barrels per day (bpd) year-to-date through November 4, below earlier forecasts of 900,000 bpd. Weak US travel activity and lower container shipments indicate subdued consumption, while US crude inventories rose 5.2 million barrels last week, exceeding expectations. Analysts warn downward pressure may continue, with Capital Economics projecting $60 per barrel by end-2025 and $50 by the end of 2026. Saudi Arabia also cut December crude prices for Asian buyers amid ample supply.
