Oil prices exhibited minimal movement early on Thursday, following a decline to two-week lows in the preceding session, as the market remained under pressure from subdued demand and an oversupply of oil globally. Brent crude futures increased by 2 cents, or 0.03%, reaching $63.54 a barrel at 0127, whereas U.S. West Texas Intermediate futures remained unchanged at $59.60.

As of November 4, global oil demand has increased by 850,000 barrels per day year-to-date, falling short of the 900,000 bpd growth anticipated earlier by J.P. Morgan, according to a note. “High-frequency indicators suggest that U.S. oil consumption remains subdued,” the note stated, highlighting weak travel activity and diminished container shipments.

In the previous session, oil prices experienced a decline following the announcement from the U.S. Energy Information Administration that U.S. crude stocks increased by 5.2 million barrels to 421.2 million barrels last week, contrasting with expectations for a rise of 603,000 barrels. “Capital Economics stated, ‘We think that downward pressure on oil prices will prevail, supporting our below-consensus forecast of $60 per barrel by end-25 and $50 per barrel by end-26.'”

In October, global oil prices experienced a decline for the third consecutive month, driven by concerns regarding oversupply. This situation arises as the Organization of the Petroleum Exporting Countries, along with its allies, has ramped up production, while output from non-OPEC producers continues to expand as well.