Supply and demand issues in oil are affecting prices.

Oil Prices: Demand and Supply Concerns Continue

Oil prices remained largely stable on Thursday after closing at their lowest levels in two weeks in the previous session, impacted by weak demand and a global oil supply surplus.

Sales Pressure on Prices

Brent crude futures rose by %0.03 to 63.54 dollars, while U.S. crude oil (West Texas Intermediate) remained steady at 59.60 dollars per barrel.

Global Demand Data

In a note sent to its clients, J.P. Morgan indicated that from the beginning of 2023 to November 4, global oil demand had increased by 850,000 barrels per day, falling short of the expected 900,000 barrels. Additionally, high-frequency indicators pointed to continued weak U.S. oil consumption. The note highlighted weak travel traffic and lower container shipping.

Stock Increases and Price Decreases

In the previous session, the U.S. Energy Information Administration (EIA) announced that crude oil stocks had risen by 5.2 million barrels last week, reaching 421.2 million barrels. This figure was significantly above the market expectation of only 603,000 barrels increase.

Future Price Forecasts

Capital Economics stated in a published report that downward pressure on oil prices will continue, indicating support levels of 60 dollars per barrel for the end of 2025 and 50 dollars for the end of 2026.