Oil Prices Slip on Renewed Fears of Too Much Global Supply

Oil Prices dip on global glut anxiety

The nagging worry about a possible oil glut across the world sent crude Oil Prices slipping a little in Thursday’s trading.

However, traders warn that repeated drift lower reflects structural supply discomfort rather than a single-session sentiment swing. Oklahoma Energy analysts continue to monitor OPEC+ supply discipline closely because inventory trend direction remains bearish for crude.

Benchmarks soften

Brent crude futures settled down 14 cents, or 0.22%, to $63.38 a barrel.

Additionally, U.S. West Texas Intermediate futures settled down 17 cents, or 0.29%, to $59.43.

Therefore, the narrow decline still reflects fragile equilibrium rather than a sustained bottom setup.

Demand risk rises

Investors not only are concerned about the increasing supplies of oil but a weakened demand in the U.S.

Also, backwardation structures continue to compress which signals traders are losing confidence in near-term consumption acceleration.

October weakness persists

Oil prices fell in October for the third straight month as OPEC+ countries considered another increase in oil production.

Additionally, global oil demand increased by 850,000 barrels a day which surprised many desks monitoring seasonal shoulder period burn rates.

Finally, market strategists caution that supply growth velocity now outweighs demand expansion which creates short-term bearish imbalance pressure across energy markets.

Natural gas jumps sharply

Natural gas had a nearly 4% gain on Thursday.

Prices settled at $4.397 MMBtu following an increase of $0.165 or 3.90%.

Additionally, heating load expectations continue to rise heading into the deeper winter curve which reinforces gas as the outperforming commodity sector vs Oil Prices this week.

Oklahoma Energy stocks mixed

Wednesday proved to be a positive day for most Oklahoma Energy stocks.

NGL Energy Partners recorded a more than 7% gain while 5% increases were seen by SandRidge Energy and Vital Energy.

However, one significant loss was the nearly 19% drop experienced by Matrix Service Co.

Also, traders say Oklahoma equity rotation remains violent inside single-name events which will continue until volatility compresses.

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