Oil steadies after two-day slide on oversupply fears
Oil prices held their sharpest two-day decline in a month as concerns over global oversupply continued to pressure the market.
Brent crude hovered around $62 a barrel after dropping 3% in the previous two sessions, while West Texas Intermediate traded above $58, News.Az reports, citing Bloomberg.
The U.S. government forecast that domestic crude production will reach a record 13.6 million barrels per day this year, adding to the surge in supply. At the same time, several major refiners in India are purchasing Russian oil, easing earlier concerns about global supply disruptions.
“I’m surprised we have not seen any attempts to force Brent properly below $62,” said Ole Hansen, head of commodities strategy at Saxo Bank AS. He noted that despite persistent negative news, selling pressure has been limited, suggesting that the biggest risk to prices could be upward if next year’s oversupply is already priced in.
According to a document seen by Bloomberg, the American Petroleum Institute reported a decline of 4.8 million barrels in U.S. crude inventories last week. However, gasoline and distillate stockpiles, including diesel, saw significant increases. Official figures are expected on Wednesday.
Crude prices have remained within a narrow $4-per-barrel range since early November, as oversupply concerns compete with geopolitical risks tied to Russian oil shipments to countries such as India. Key market outlook reports from the International Energy Agency and OPEC are expected later this week and may offer further insight into supply and demand trends.
Similar news
