Oil falls below $60 as US crude inventories surge
2 Min Read
Oil prices fall below $60 as US crude stockpiles surge. Rising inventories and weak global demand raise fears of a growing supply glut into 2026.
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Storage tanks are seen at the North Jeddah bulk plant, an Aramco oil facility, in Jeddah, Saudi Arabia, on March 21, 2021. (AP)
US crude prices dropped below $60 per barrel on Wednesday, hitting a two-week low as a larger-than-expected build in US stockpiles raised concerns over a growing global supply glut.
The decline marks the third consecutive day of losses. The US Energy Information Administration (EIA) reported a 5.2 million-barrel increase in domestic crude inventories for the week ending October 31 — far exceeding forecasts.
While gasoline and distillate stockpiles fell by 4.7 million and 600,000 barrels respectively, signs of strong fuel demand were overshadowed by broader supply-side pressures. The International Energy Agency recently warned of a potential 4 million barrel-per-day global surplus in 2026.
Market reaction
West Texas Intermediate (WTI) fell 96 cents to settle at $59.60 per barrel — dipping below the key $60 mark for the first time in two weeks.
Brent crude, the global benchmark, dropped 92 cents (1.4%) to close at $63.52, remaining under the $65 threshold.
Oil prices also faced headwinds from a stronger US dollar, amid expectations that the Federal Reserve may pause further rate cuts following recent reductions in September and October. A firmer dollar makes oil more expensive for holders of other currencies, dampening global demand.
In addition, weak macroeconomic data from both the US and China weighed on market sentiment.
The US ISM manufacturing index fell to 48.7 in October — the eighth straight monthly contraction.
China’s Caixin manufacturing PMI indicated a seventh consecutive month of slowdown, further fanning demand concerns in two of the world’s largest oil consumers.
