Oil Sees 3-Day Drop on Ample Supply Outlook


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude oil futures edged lower on Thursday (11/6) for 
the third consecutive trading session on expectations of ample supplies and 
weak demand fundamentals. 

   Expectations of higher global supply is putting downward pressure in the oil 
markets after eight OPEC+ nations decided to add 137,000 bpd output for a third 
straight month in December, over the weekend. However, OPEC+ recently announced 
that it would refrain from hikes in the first quarter of 2026. Since April, the 
group has added 2.9 million bpd to supply.

   The bearish sentiment was also driven by Saudi Aramco's decision to 
significantly cut its Official Selling Prices for December crude deliveries, 
dropping the key Arab Light grade to Asia by $1.20 bbl from November's level. 
Medium and heavy grades faced even steeper reductions of $1.40 bbl.

   The cuts reflect Saudi Aramco's view that the Asian market is already with 
crude oversupplied and that softer selling prices are the key to boosting 
demand, traders said.

   The NYMEX WTI contract for December delivery settled down $0.17 at $59.43 
bbl. ICE Brent for January delivery eased $0.14 to $63.38 bbl. The week-to-date 
loss of 2.6% for WTI and Brent was the highest in a month.

   Refined product prices bucked the lower trend in crude. December RBOB 
gasoline futures advanced $0.0524 to $1.9617 gallon, while front-month ULSD 
futures rose $0.0611 to $2.436 gallon.

   The Dollar Index fell by 0.429 points, settling at 99.63 against a basket of 
foreign currencies. This drop occurred amid economic uncertainties stemming 
from the federal government shutdown, which began on October 1 and is now the 
longest in U.S. history.




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