FX.co ★ Oil Slips Further on OPEC Outlook

WTI crude oil futures declined, nearing $58 per barrel on Thursday, continuing a fall exceeding 4% from the previous session. This drop marks a three-week low as OPEC revised its market forecast, indicating a well-supplied outlook. The organization now anticipates global oil production will align with demand by 2026, adjusting its previous predictions of a shortfall, and highlighted that supply had already surpassed demand in the third quarter. Additionally, the US Energy Information Administration increased its forecast for domestic production next year, while the International Energy Agency recently adjusted its position on peak oil demand, now forecasting that global consumption will continue to climb until 2050. Investors are eagerly awaiting the IEA’s monthly report, due later today, for further potential bearish indicators. Contributing to the downward trend, industry reports indicated an increase in US crude inventories by 1.3 million barrels for the week ending November 12th, which, if validated by official data, would signify a second consecutive weekly rise.