Oil falls amid worries about oversupply, weak US demand

Oil drilling rigs

Oil prices fell on Thursday as investors assessed the likelihood of a global supply glut alongside signs of weaker demand in the US.

Brent crude futures for January delivery dropped 0.22%, or $0.14, to $63.38 per barrel, while WTI (Nymex) crude futures for December delivery slipped 0.29%, or $0.17, to $59.43 per barrel.

The decline comes after oil prices recorded their third consecutive monthly loss in October, amid ongoing concerns about rising supply as OPEC+ production increases in tandem with continued output growth from non-member countries.

Weak global demand remains a persistent concern. J.P. Morgan said in a note that global oil demand has risen by about 850,000 barrels per day from the start of 2025 through Nov. 4, lower than earlier estimates of 900,000 barrels per day.

Meanwhile, the US Energy Information Administration (EIA) reported that US crude inventories increased by 5.2 million barrels last week.