Oil edges lower amid supply glut

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In this file photo, the sun is seen behind a crude oil pump jack.
— Reuters/File
In this file photo, the sun is seen behind a crude oil pump jack. — Reuters/File

NEW YORK: Oil prices edged lower on Monday as analysts stuck to predictions that rising supply will outweigh demand in the months ahead, even if further sanctions against Russia curb exports from that country.

Brent crude futures fell 18 cents, or around 0.3 per cent, to $63.45 a barrel by 11:11 a.m. ET (1611 GMT). US West Texas Intermediate crude dropped 21 cents, or 0.4pc, to $59.54 a barrel.

Both benchmarks fell about 2pc last week, their second consecutive weekly decline, on expectations that crude oil supply will exceed demand in the months ahead due to higher Opec+ production and record US output. Doubts over the effectiveness of the latest US sanctions against Russia are also weighing on crude prices.

“Although the US has stepped up direct sanctions on Russian oil producers Rosneft and Lukoil, it’s not clear how effective they will be in limiting Russian exports,” independent energy analyst Tim Evans said.

This month Opec+, the Organisation of the Petroleum Exporting Countries and allied producers, agreed to increase output slightly in December.

While the group also paused further hikes in the first quarter, that may not limit supplies enough to support prices.

“Even with the prospect of reduced Russian supply and the 1Q26 freeze on Opec+ production quotas, the global crude oil market may run a smaller supply/demand surplus rather than a more supportive deficit,” Evans said.

Crude inventories are also on the rise in the US while the volume of oil stored aboard ships in Asian waters has doubled in recent weeks after tightening Western sanctions curtailed imports into China and India.

Published in Dawn, November 11th, 2025

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