Oil prices dropped on Thursday, extending losses from the previous session, as rising U.S. crude inventories and a shift in OPEC’s supply outlook raised concerns about global oversupply.
Brent crude fell 20 cents to $62.51 a barrel, while U.S. West Texas Intermediate dropped 24 cents to $58.25 a barrel. U.S. crude stockpiles rose by 1.3 million barrels in the week ending November 7, according to American Petroleum Institute figures, ahead of the official data release by the U.S. Energy Information Administration later on Thursday.
“We have seen a build in oil inventories across key locations in Europe, Singapore, Fujairah, and the U.S.,” said UBS analyst Giovanni Staunovo.
Oil prices dropped more than $2 on Wednesday after OPEC projected that global oil supplies would slightly exceed demand in 2026, a reversal from previous forecasts of a deficit. “Recent price weakness is driven by OPEC’s revision, acknowledging a potential supply glut in 2026,” said Suvro Sarkar, DBS Bank energy sector lead.
OPEC attributed the expected surplus to higher production from OPEC+ members, including Russia. The International Energy Agency also raised its forecast for global oil supply growth through 2026, signaling continued upward pressure on inventories.
Despite the oversupply concerns, analysts expect oil prices to find support around $60 per barrel, noting that potential short-term disruptions, such as stricter sanctions on Russian exports, could stabilize the market.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
