Oil futures in early trade showed slight declines, reflecting a tug-of-war between stable demand signals and growing concerns over excess supply. West Texas Intermediate for October delivery slipped to USD 62.65 a barrel, barely down, and Brent for November edged lower to USD 66.56 a barrel.
Analysts suggest that while supply remains plentiful, particularly with OPEC+ ramping up production and minimal disruption in key exporting regions, demand remains tepid. Soft economic data from the U.S. and elsewhere, coupled with high inventory levels, are weighing on sentiment. On the flip side, geopolitical tensions and the possibility of supply-side surprises are keeping traders from pricing in a sharper drop.
Forecasters are also watching crude stock builds in OECD countries, and how China’s ongoing crude purchases for reserves may absorb some excess supply. Together, these factors hint that prices could trade in a tight band in the near term unless a clear catalyst, either a demand pickup or supply constraint, emerges.
