Oil prices at two-week low on oversupply concerns

Oil prices fell more than 1% on November 5, closing at a two-week low on concerns about a global supply glut. However, data showing strong fuel demand in the United States helped limit the decline.

An oil refinery in Wasit province, Iraq. Photo: THX/TTXVN

At the end of this session, the price of North Sea Brent crude oil for delivery decreased by 92 US cents, equivalent to 1.43%, to 63.52 USD/barrel, while the price of US light sweet crude oil WTI decreased by 96 US cents, equivalent to 1.59%, to 59.60 USD/barrel.

Oil prices fell after US government data showed the country's crude oil inventories rose last week.

“Recovering imports and slowing refinery activity due to scheduled maintenance have led to a build in US crude inventories,” said Matt Smith, Americas oil analyst at data analytics platform Kpler.

According to the US Energy Information Administration (EIA), US crude oil reserves increased by 5.2 million barrels last week, to 421.2 million barrels - much higher than the 603,000 barrel increase forecast by analysts. However, signals showing higher-than-expected gasoline demand in the US helped oil prices not fall too much. US gasoline reserves last week fell by 4.7 million barrels, to 206 million barrels, while analysts only forecast a decrease of 1.1 million barrels.

The new budget plan announced by Canadian Prime Minister Mark Carney on November 4 also raised concerns about oversupply, suggesting that the country could scrap emissions limits for the oil and gas industry. Under this plan, Canada could abandon its controversial strategy on oil and gas emissions and pump more oil into the market.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, agreed last weekend to increase production by 137,000 barrels per day in December 2025, while suspending plans to increase production in the first quarter of 2026.

In Kazakhstan, crude oil production (excluding condensate) fell 10% last month to 1.69 million barrels a day, but remained above the OPEC+ quota. Meanwhile, the Russian Black Sea port of Tuapse has suspended fuel exports and its refinery has stopped processing after drone attacks on November 3.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-thap-nhat-trong-hai-tuan-do-lo-ngai-du-cung-20251106074712356.htm