Crude oil prices edged higher on Thursday, recovering slightly after settling at two-week lows in the previous session, as fears of an oversupplied market eased.
By 07:53 GMT, Brent crude futures climbed 24 cents, or 0.38%, to $63.76 per barrel, while U.S. West Texas Intermediate (WTI) futures gained 25 cents, or 0.42%, to $59.85 per barrel.
Global oil benchmarks ended their third consecutive monthly decline in October, pressured by concerns of excess supply as both OPEC and non-OPEC producers ramped up output.
However, sentiment began to shift toward the end of the month after sanctions imposed by the U.S. and the U.K. on major Russian oil companies prompted traders to scale back their bearish bets, Haitong Securities noted.
The firm added that OPEC+’s decision to delay additional production hikes until the first quarter of next year also helped ease oversupply fears.
Still, worries over sluggish demand continue to weigh on the market.
According to J.P. Morgan, global oil consumption has risen by 850,000 barrels per day so far this year through November 4 — slightly below its previous forecast of 900,000 barrels per day.
“High-frequency indicators suggest that U.S. oil consumption remains subdued,” the bank said, citing weak travel activity and a slowdown in container shipping volumes.
Oil prices had fallen in the prior session after data from the U.S. Energy Information Administration showed that domestic crude inventories jumped by 5.2 million barrels last week to 421.2 million barrels, far exceeding forecasts for a modest 603,000-barrel build.
“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,” Capital Economics said in a note.
Meanwhile, Saudi Arabia — the world’s largest oil exporter — cut the price of its crude for Asian customers for December delivery, responding to ample global supply as OPEC+ producers continue to boost output.
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