FX.co ★ Oil Hovers at Two-Week Low

WTI crude oil futures remained just under $60 per barrel on Thursday, continuing a two-day decline to reach their lowest point in two weeks. This drop is attributed to a substantial inventory build-up that intensified worries about an oversupply in the market. Recent government figures revealed a surge in US crude inventories by over 5 million barrels last week, marking the largest increase since July. Conversely, US gasoline stocks decreased by nearly 5 million barrels, reaching a three-year low. The growth in crude inventories has raised concerns amid increasing production from both OPEC+ members and non-member producers, heightening fears of a possible global surplus. Mercuria, a commodities trading firm, indicated that the surplus is gradually forming and could potentially reach 2 million barrels per day by next year. OPEC+ has also recently sanctioned a modest production boost for December but has announced plans to halt additional increases in early 2026, signaling a cautious approach amidst weakening demand. Partially offsetting the declines, Russia's Tuapse port halted fuel exports and refinery operations following damage to its infrastructure from Ukrainian drone attacks.