Stability of Oil Prices After a Two-Day Decline

SadaNews - Oil prices stabilized after a two-day decline, as the U.S. Energy Information Administration reported the largest increase in U.S. inventories since July.

West Texas Intermediate crude traded below $60 a barrel after losing 2.4% over the previous two sessions, while Brent crude stabilized below $64 a barrel on Wednesday.

The Energy Information Administration's report showed that crude inventories rose by 5.2 million barrels in the week ending October 31, which was slightly below the expectations of a prominent industry group, while a decline in petroleum product inventories helped to curb the downward momentum.

Increase in Global Production Pressures Prices

U.S. benchmark crude has fallen about 17% since the beginning of the year, as production from OPEC+ countries and outside producers has increased, amid concerns about a potential global oversupply.

The CEO of Mercuria Energy Trading during the Adipec conference in Abu Dhabi on Wednesday stated that the supply surplus is accumulating slowly, but is likely to reach 2 million barrels per day by next year.

The Energy Information Administration's report showed that U.S. gasoline inventories fell by about 5 million barrels to the lowest level in three years, despite relatively stable exports and demand.