Oil Prices Sink 3% as Rising U.S. Inventories Deepen Oversupply Fears

Core Viewpoint - Oil prices have significantly declined due to rising U.S. oil inventories and indications of global supply exceeding demand [1][4][7] Supply and Demand Dynamics - WTI crude oil is trading at $58.91 per barrel, down 3.01%, while Brent crude has slipped to $63, down approximately 2.91% [1][2] - The American Petroleum Institute reported a rise of about 4.4 million barrels in U.S. commercial crude stocks for the week ending November 14, indicating a comfortable supply situation as the year ends [4] - Analysts expect a third consecutive weekly increase in crude inventories in the upcoming EIA report, further heightening oversupply concerns [4] Global Production Trends - U.S. crude production reached record levels last week, despite a slowdown in drilling activity [5] - China's crude imports and domestic production have exceeded refinery throughput by about 690,000 barrels per day (bpd), leading to a total increase of approximately 900,000 bpd in stockpiles since March [6] Market Outlook - Analysts are increasingly bearish on oil prices, with Goldman Sachs projecting a global surplus of roughly 2 million bpd by 2026 due to delayed long-cycle projects and increased non-OPEC supply [7] - The bank forecasts Brent averaging about $56 and WTI about $52 in 2026, significantly lower than current forward prices, indicating a medium-term outlook of abundant supply [7]