Oil prices edged down on Thursday, extending losses from the previous session, as a report showing rising crude inventories in the United States reinforced concerns about global oversupply.

Brent crude futures fell 20 cents to $62.51 a barrel by 0953 GMT, after dropping 3.8% a day earlier. U.S. West Texas Intermediate crude fell 24 cents to $58.25 a barrel, extending a decline of 4.2% on Wednesday.

U.S. crude stockpiles rose by 1.3 million barrels in the week that ended November 7, market sources said on Wednesday, citing American Petroleum Institute figures.

The U.S. Energy Information Administration is expected to release inventory data later on Thursday.

“We have seen a build in oil inventories across key on shore locations across Europe, Singapore, Fujairah and the United States based on preliminary data last week,” UBS analyst Giovanni Staunovo said.

Prices fell more than $2 a barrel on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said global oil supplies would slightly exceed demand in 2026, for a further shift from the group’s earlier projections of a deficit.

“Recent (price) weakness seems to be driven by OPEC’s revision of supply-demand balance in 2026 in its monthly report, which confirms the group is now acknowledging the possibility of a supply glut in 2026, in contrast to its more bullish stance all along,” said Suvro Sarkar, DBS Bank’s energy sector team lead.

OPEC said it expected the supply surplus next year because of the wider production increases by OPEC+, a group of producers that includes OPEC members and allies like Russia.

The International Energy Agency (IEA) raised its global oil supply growth forecasts for this year and next in its monthly oil market report on Thursday, signalling a bigger surplus in 2026.

The U.S. EIA also said in its Short-Term Energy Outlook on Wednesday that U.S. oil production is expected to set a larger record this year than previously forecast.

Global oil inventories will grow through 2026 as production increases faster than demand for petroleum fuels, adding to pressure on oil prices, the EIA added.

Looking ahead, some analysts expected prices to stay close to present levels.

“There should be considerable support to oil prices around $60/bbl, especially given there could be short-term disruption to Russian export flows once stricter sanctions kick in,” DBS’ Sarkar said.
Source: Reuters