Oil prices experienced a decline for the second consecutive day on Thursday, following an industry report that indicated an increase in crude inventories in the United States, the largest consumer of crude oil globally. This development has intensified worries that global supply is sufficiently robust to satisfy current fuel demand. Brent crude futures experienced a decline of 3 cents, equivalent to 0.03%, settling at $62.69 a barrel by 0234, following a decrease of 3.8% in the prior session. U.S. West Texas Intermediate crude experienced a decrease of 5 cents, representing a 0.09% decline, settling at $58.44 per barrel, thereby extending its 4.2% drop observed on Wednesday. Sources indicated that U.S. crude stockpiles increased by 1.3 million barrels in the week ending November 7. According to sources referencing data, there has been a decline in gasoline and distillate stockpiles.

On Wednesday, prices declined by over $2 a barrel following the release of the monthly report by the Organization of the Petroleum Exporting Countries, which indicated that global oil supply is expected to slightly surpass demand in 2026. This represents a notable departure from the group’s previous forecasts of a supply deficit. “OPEC’s signal of a supply surplus unleashed previously pent-up bearish sentiment in the previous session, while a U.S. crude inventory build added pressure, pushing oil prices to continue to slide on Thursday morning,” stated Yang An. OPEC anticipates a supply surplus in the coming year due to the broader production increases by OPEC+, which comprises both OPEC members and allied producers like Russia. The U.S. Energy Information Administration is set to publish its inventory data later on Thursday.

A survey prior to the release of U.S. inventory data projected, on average, an increase in crude inventories of approximately 2 million barrels. Additional reports released on Wednesday contributed to the prevailing bearish sentiment among investors. The EIA indicated in its Short-Term Energy Outlook that U.S. oil production is projected to achieve a higher record this year than earlier estimates suggested. The EIA indicated that global oil inventories are projected to expand through 2026, driven by production outpacing demand for petroleum fuels, thereby exerting additional pressure on oil prices.

The bearish sentiment in the market was further indicated by a shift in the market structure for WTI on Wednesday, with the spot price dropping below the futures for delivery in six months’ time, known as a contango. A contango generally suggests a diminished immediate demand for oil or an anticipation of surplus supply in the forthcoming months. On Thursday, the front-month WTI contract exhibited a discount of 18 cents relative to the contract set for six months ahead.