Oil Prices Drift Lower as Demand Weakness Weighs on Markets

Core Insights - Oil prices have experienced a modest decline, with West Texas Intermediate (WTI) down 0.71% to $60.13 and Brent crude down 0.62% to $64.04 [1][2] Demand and Supply Dynamics - The market is currently facing weak demand signals, particularly in Asia, where slower industrial activity and reduced energy consumption are impacting growth prospects [2] - A strong U.S. dollar is exerting additional pressure on oil prices, making dollar-priced crude less appealing to holders of other currencies [2] - OPEC+ is attempting to manage supply by pausing output hikes in early 2026, following a modest increase planned for December, but current price movements indicate that OPEC+ discipline may not provide significant near-term support if demand does not improve [3] Inventory and Market Sentiment - Recent data from the American Petroleum Institute revealed unexpected increases in U.S. crude stocks, contributing to bearish market sentiment [4] - Rising U.S. inventories often indicate weaker refiner demand or reduced flows into storage, which can negatively affect price momentum [4] - Global oil markets are showing signs of mild oversupply due to increasing non-OPEC production and reduced absorption of incremental barrels by Asian refiners [4] Market Outlook - The early Asian trading session reflects limited potential for price increases, with traders hesitant to raise prices without a strong demand catalyst or unexpected supply disruption [5] - Upcoming inventory reports from the U.S. Energy Information Administration and new macroeconomic data from Asia will be closely monitored, as indications of demand deterioration could lead to further price declines [6]