Oil prices rose despite weak demand as concerns about oversupply eased. Oil, which closed at two-week lows in the previous session due to weak demand, rose on Thursday as concerns about oversupply eased.
Brent crude futures rose 17 cents, or 0.27%, to $63.69 a barrel at 04:55 GMT, while WTI crude futures rose 18 cents, or 0.3%, to $59.78.
Global oil prices fell for a third consecutive month in October as production from both OPEC and non-OPEC producers continued to rise. Oil price momentum shifted in late October after sanctions imposed by the US and UK on Russia’s largest oil companies two weeks ago softened the market’s aggressive downtrend.
OPEC+’s plan to halt production increases in the first quarter of next year also partially eased concerns about oversupply.
However, concerns about weak demand persist.
J.P. Morgan reported that global oil demand has increased by 850,000 barrels per day since the beginning of the year, below the previously forecast growth of 900,000 barrels per day.
High-frequency indicators suggest that US oil consumption remains subdued. Weak travel activity and lower container shipments are signs of this.
In the previous session, oil prices declined after the US Energy Information Administration (EIA) reported that US crude oil inventories increased by 5.2 million barrels to 421.2 million barrels, despite expectations of a 603,000-barrel increase last week.
The downward pressure on oil prices is likely to continue, supporting expectations of $60 per barrel in the late 2025s and $50 per barrel by late 2026.
Saudi Arabia, the world’s largest oil exporter, sharply cut crude prices for Asian buyers in December, responding to a well-supplied market as OPEC+ producers increased output.