Oil prices slipped on Thursday as rising U.S. crude inventories and a downbeat OPEC outlook sparked renewed concern over global demand. Data from the U.S. Energy Information Administration showed a 1.3-million-barrel increase in stockpiles, reversing last week’s draw and adding pressure to already fragile market sentiment. Brent crude fell 1.6% to $62.70 per barrel, while West Texas Intermediate dropped to $58.46.

The Organization of the Petroleum Exporting Countries (OPEC) added to the bearish tone, warning that global supply could outpace demand next year as production growth continues in non-OPEC countries. The group’s latest monthly report suggested that markets could see a surplus of 2.5 million barrels per day in 2026 if current trends persist.

Analysts say the report signals a potential end to the period of tight supply that had supported oil prices through much of 2024 and early 2025. With the U.S. ramping up shale output and demand in China slowing, traders are recalibrating expectations for next year’s price levels.

Lower oil prices could offer relief for energy-intensive industries but present challenges for oil-producing nations and companies reliant on higher margins. Many producers are now reviewing investment plans and delaying major exploration projects as they adapt to the changing market landscape.

Overall, the shift from fears of shortage to expectations of surplus marks a turning point for global energy markets. The coming months will reveal whether demand rebounds enough to offset the growing glut or if producers will be forced to make deeper output cuts.

Source: Reuters.