Oil falls as investors weigh potential supply glut, weak demand

Core Viewpoint - Oil prices are declining due to concerns over potential supply glut and weakened demand in the U.S., the largest oil consumer [1][2] Supply Dynamics - Global oil prices have fallen for three consecutive months amid fears of oversupply as OPEC+ increases output while non-OPEC production continues to grow [2] - Saudi Arabia has significantly reduced crude prices for Asian buyers in December, responding to a well-supplied market [5] - Recent sanctions on Russia's largest oil companies have raised concerns about supply disruptions, although the overall impact on prices remains limited [6][7] Demand Insights - Global oil demand increased by 850,000 barrels per day in the year to November 4, which is below the previously projected increase of 900,000 bpd by JPMorgan [3] - High-frequency indicators suggest subdued U.S. oil consumption, attributed to weak travel activity and lower container shipments [3][4] - Low refinery run rates in the U.S. indicate weak demand for crude, influenced by a significant refinery turnaround season [4]