Oil prices continued to edge lower during Asian trade on Thursday, extending sharp losses from the previous session after data showed a rise in United States crude inventories, fuelling concerns that global supply is exceeding current demand.
By 3:25 pm AEDT (4:25 am GMT), Brent crude futures slipped 5 cents, or 0.1%, to $62.66 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 7 cents, or 0.1%, to $58.42.
Both benchmarks had already fallen 3.8% and 4.2%, respectively, in the previous session.
Market sources citing American Petroleum Institute figures said on Wednesday that U.S. crude stockpiles rose by 1.3 million barrels for the week ending 7 November.
Prices tumbled more than $2 a barrel in the prior session after the Organization of the Petroleum Exporting Countries (OPEC) projected that global oil supplies will slightly exceed demand in 2026 - marking a shift from its earlier forecasts of a deficit.
ANZ analysts noted: "Crude oil prices slumped amid a barrage of bearish factors confronting traders. WTI crude fell more than 3% as spot prices pushed below longer-dated futures contracts.
"This is the first time this so-called bearish structure has occurred since February and is a fresh sign of the widely anticipated supply glut."
OPEC said the expected supply surplus next year stems from increased production among members of OPEC+.
Traders are now awaiting fresh U.S. Energy Information Administration (EIA) inventory data due later Thursday. Adding to the downbeat tone, the EIA said in its Short-Term Energy Outlook that U.S. oil output is on track to set a larger record this year than previously forecast.
According to the agency, global oil inventories will continue to grow through 2026 as production expands faster than demand for petroleum fuels - a trend likely to keep downward pressure on prices in the near term.
