"Crude oil prices were lower today as the market could continue to see bearish risks, although WTI remained within the price range recorded during the last few weeks. The market remained dominated by an oversupply narrative. With surplus projections dominating next year's outlook, including the IEA's forecast of a potential 4 mb/d surplus in 2026, the market could continue to see selling pressures. As such, price spikes induced by geopolitical risks could be seen as selling opportunities. At the same time, the latest API report signalled a substantial 4.4 million-barrel build in US crude stocks."
"This marks the third increase in four weeks, which could continue to weigh on sentiment. Traders are now bracing for today's EIA data. This comes after last week's report confirming a massive 6.4 million-barrel build. If today's official numbers mirror the API's trend, crude prices could come under renewed pressure. Meanwhile, the looming US sanctions 21 November deadline on Rosneft and Lukoil could provide a floor for oil prices to a certain extent, but could remain insufficient to reverse the negative sentiment."
Crude oil prices declined amid persistent bearish risks while WTI stayed within recent ranges. The market is dominated by an oversupply narrative, with forecasts pointing to a potential 4 mb/d surplus in 2026 from the IEA, increasing selling pressure and framing geopolitical price spikes as selling opportunities. The API reported a 4.4 million-barrel build in US crude stocks, the third increase in four weeks, weighing on sentiment. Traders await today's EIA data after last week's 6.4 million-barrel build, which could renew downward pressure if confirmed. The looming 21 November US sanctions on Rosneft and Lukoil may provide limited price support but likely will not reverse negative sentiment.
Read at London Business News | Londonlovesbusiness.com
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