WASHINGTON (dpa-AFX) - Crude oil prices declined as oversupply concerns weighed heavily on sentiment. Both Brent and WTI are trading deep in the red in anticipation of an expected oil glut.
Oversupply concerns were reignited following mixed data from the U.S. Energy Information Administration on Wednesday that revealed a decline in crude oil stocks and a jump in distillate and gasoline stocks during the week ended December 5.
Official data showed crude oil inventories in the U.S. falling by 1.8 million barrels. This compared with a rise of 0.57 million barrels in the previous week, and market expectations of a draw of 2.3 million barrels.
Stocks of gasoline however jumped by 6.4 million barrels versus a 4.5 million barrels rise in the previous week, beating forecasts of an increase of 2.8 million barrels. The fourth consecutive weekly rise in gasoline inventories was also the strongest since the last week of 2024.
U.S. distillate stocks also increased by 2.5 million barrels during the same period versus a 2.06 million barrel increase the previous week and compared with market expectations of a build of 1.9 million barrels.
Industry-level data related to the same period released on Tuesday by the American Petroleum Institute had shown crude oil inventories decreasing by 4.8 million barrels versus a 2.48-million-barrel draw in the previous week.
Sentiment remained impacted despite the International Energy Agency signaling a narrower surplus in 2026 than previously forecast. The agency has in its latest report raised the demand forecast and also simultaneously trimmed expectations for supply growth.
Brent Oil Futures for February settlement is currently trading at $61.54, having shed 1.1 percent from the previous close of $62.21. The day's trading ranged between $61.2 and 62.73. The 52-week trading had ranged between $58.4 and $82.63.
Brent has slipped 2.7 percent over the past week, and 1.9 percent over the past month. Year-to-date losses are a little more than 17.5 percent. Brent oil is currently down more than 21 percent from the levels three years ago.
West Texas Intermediate (WTI) Crude Oil Futures for January settlement also slipped 1.1 percent from the previous close of $58.46 to trade at $57.80. Prices ranged between a high of $58.95 and a low of $57.52 in the day's trading. Trading has ranged between $55.12 and $80.59 over the past 52 weeks.
With weekly losses of more than 3 percent, losses over the past month have increased to 1.2 percent. Year-to-date losses are a little less than 19 percent. Prices are currently more than 21 percent below the levels three years ago.
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