WTI Crude Oil pared some losses on Thursday but remains stuck under the key $60.00 level, with oversupply concerns preventing a stronger rebound.
Prices have recovered from Wednesday’s low of $58.65, climbing to the upper $59.00s. The upcoming U.S. sanctions on Russia, set to take effect on November 21, are expected to curb Russian exports and offer some support to crude.
Fresh EIA data released Wednesday showed U.S. crude inventories falling by 3.426 million barrels for the week ending November 14, a much larger drop than the 1.9 million barrels expected. This helped counter the previous day’s API report, which indicated a 4.4-million-barrel build following a 1.3-million increase the week before.
Still, Thursday’s modest recovery does little to offset Wednesday’s steep 2.3% decline. Reports suggesting secret U.S.-Russia negotiations over the Ukraine conflict have tempered expectations surrounding the sanctions. At the same time, producers are projected to continue ramping up output despite softer global demand, reinforcing fears of excess supply.
OPEC’s supply outlook last week projected that global output will meet demand in 2025 as OPEC+ increases production—a reversal from earlier forecasts of a supply deficit in 2026—triggering sharp declines in oil prices.
